We take a look at why the U.S Dollar is structurally on a bear trend against the High Yielding Emerging Market currencies.
Two factors are going against the U.S Dollar.
1.) Low-interest rate differentials
2.) Negative Current Account Balance + Increased Fiscal spending increasing this problem for USD.
These four setups are popular trades across investment...
We continue to see the U.S Dollar weaken against the Mexican peso.
The interest rate differential makes the Mexican peso an attractive buy and we look at this in more detail.
We use one-month ATR to set our stop loss and take profit targets.