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LATAM: Watch Brazil But Buy The Peso

Lior Alkalay - INO.com Contributor - Forex

LATAM currencies are back in the game. Optimism over Brazil’s political future is growing and commodities, a key driver of regional growth, are recovering. Together, much of the uncertainty looming over the region has been removed and put regional currencies -the Brazilian Real, Mexican Peso and Chilean Peso into favor.

One important gauge of rising optimism is the price of Credit Default Swaps. Credit Default Swaps, or CDS for short, measure the cost of insuring against a bankruptcy. When the price of Credit Default Swaps falls, it points on lower risk and higher optimism. As the chart below indicates, Credit Default Swaps have fallen dramatically across the region since February, signaling a surge in optimism in the LATAM space.

Chart courtesy of Deutsche Bank

But the CDS chart illustrates another very interesting picture. While the fall in risk is across the board, Brazil, the largest economy in the region, is deemed as the most probable to default on its debt by a wide margin compared to much smaller regional peers. [Continue reading]

Weekly Futures Recap With Mike Seery

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The Japanese Gold Trapped In A Large Consolidation

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Stock of the Week up more than 8.4% in 2 days

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This Stock Could Feed Profits Into Your Portfolio

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Are We or Are We Not in a New Gold Bull Market?

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One Thing You May Have Missed About Apple

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Israeli Shekel Turning Japanese?

The Israeli Shekel has gained roughly 6% since mid-January. The Shekel has also been more resilient than other currencies when the dollar was gaining, and it has been performing well even when the dollar was weakening. All the while, Israel has been … [Continue reading]

This Fibonacci Timing Zone Is To Blame For The Market Volatility?

I was on CNBC's Squawk Box today and host Brian Sullivan asked where I thought the market was going. The truth is, we are in a pocket of high volatility with little net price change from 1 year ago. Why? We are caught in a Fibonacci Timing Zone that … [Continue reading]

Fill In The Caption

As promised here is today's caption for the "Amtrak Primary." What do you think would be the "perfect caption" for this photograph of Senator Ted Cruz? Here's mine: "Your world is on fire"! Feel free to leave your caption, but please keep … [Continue reading]

Waiting On The Fed, GDP Results And Apple Earnings

The markets will be watching the Fed closely, looking for the central bank's latest decision on interest rates (although no one expects a change), there's also new GDP estimates for the markets to chew on. Meanwhile, there are corporate earnings … [Continue reading]

What To Expect In The Oil Market

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