Ohh and I forgot: 1) Mexico dollar reserves are getting very big and we just pre-paid external debt. 2) Mexico´s rate is still 2 points better than the US rates. 3) Principal index is still like 7 times earnings (cheap) in the US they have 20 times earnings aprox. More dollars comming.
Why do some of you traders (you're not the only one) believe that the only way to make money is to trade where the interest is in your favor?
In what post did I said to only trade interest in your favor? In this pair I see it as a plus, but only that. What im saying to this guy is that fundamentals are 100% against him.
You are correct. You never explicitly said that's what you do. But you've mentioned it, twice, as if it were a very important aspect of your trading. If you're trading intraday, what should it matter what carry you're getting?
If you trading intraday it doesnt matter. I dont live from forex. I do more long to medium term forex when I see an opportunity, so for me getting interests in my side is important. I do some daily once in a while but thats it. An example of playing interest your side, was last year before the fed got his rates this high, being long on peso gave 2% (20 pips) back of your investment daily!!!!. Make the numbers and you make a fortune just by buying and selling at the same price in a year term. And if that wasnt enought the peso won 10% in value vs dollar, that was an opportunity you dont see much. In my kind of trading or investing, interest plays an important role.
10.86 hit today. Mexicos national bank sells 22 million USD daily, starting august the national Bank will be sellimg 47 million daily. Just giving more facts. By the way, we may see some very complicated political issues after the election jury decides if the election was fare or not (desicion comming early august). The leftist is not gonna respect the desicion because he wants a vote to vote recount wich will never happend (its against the law). And he make take the streets and make a mess, we gotta be ready and take advantage of thas situation. I will update when getting closer to that date.
Long dollars at 10.8950 expecting complicated political issues this sunday. And all the shorts going to take profit this friday. There´s noone that crazy to keep the short this weekend.
One more time right on the money. 10.96 today, I still think we can reach 10.98 - 11.00 tomorrow. Took profit 3 lots today, keeping 2 more for tomorrow. One more time hope you guys took adive.