Monday saw Latin America's most traded currency minimally drop in value as a result of careful investors watching the new prime ministers of Italy and Greece to assess how they will handle the sovereign debt scourge, according to Dow Jones Newswires.
Mario Monti of Italy and Lucas Papademos of Greece fill the vacancy created by predecessors who were victimized by an inability to control the sovereign debt scourge. Monti and Papademos are now in positions to more aggressively confront the debt, which is victimizing worldwide monetary units including the Mexican peso.
Mexico City brokerage Interacciones told Dow Jones Newswires that risk appetite is likely to increase, which would benefit the value of the Mexican peso. The outfit also noted initial progress for Greece and Italy was demonstrated in the market yet dangers very clearly remain with the euro zone debt scourge.
The Organization for Economic Cooperation and Development stated the next few months are likely to see the top economies of the world struggle, according to Reuters.
Mexican interest rates would rise if the peso does not weaken, the Central Bank of Mexico stated, according to The Business Recorder.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
