Chilean Elections
Chile, The Presidential election took place yesterday and it was won by Sebastian Pinera the opposition ring wing candidate. He won with 51.6% of the vote after 99.2% of the votes were counted. This is the first time since the 70’s that a right wing candidate has won the presidential election. The market opened with a slightly lower Dollar this morning, but immediately found buyers. I think the market was leaning toward this and so far it is a “sell the rumor buy the fact” situation.
Brazil, Quiet but continued Dollar positive day. I am currently long Dollars looking for the Spot to touch 1.8000 (currently 1.7740). No reason except it looks to me that the Central Bank does not want it lower, the market is fearful to take it lower and as such it should grind higher. Since this is a negative carry trade it gets a short lease and small position size.
Euro, continues to look like it will head lower. I am targeting 1.4200 and I think we could get there by the end of the week. Above 1.4460 and I would reconsider this trade.
Being a U.S. holiday today the markets are very quiet. Best to not make big decisions on quiet days like this.
Good Luck and Good Forex Trading
Comments
2 Comments on Chilean Elections
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Jesus Cheung on
Tue, 19th Jan 2010 7:19 am
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Banker on
Tue, 19th Jan 2010 8:09 am
nice blog!
i have been leveraging up my short euro positions all the way from 1.35 to 1.5 since
last year. finally- profit. i will be closing all the shorts if 1.4 is seen.
It looks like we have a good chance of getting there. I have been attracking the Euro from the short side for a while with only limited success. But I really think we have a big move coming.
Thanks for reading and I appreciate the comments.
Banker
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