Buy USDCHF at 1.08

[B]My picks:[/B] Buy USDCHF @ 1.08
[B]Expertise:[/B] Global Macro
[B]Average Time Frame of Trades:[/B] 1 week

Apparently, this morning traders woke up with a predisposition to hunt for yield. The largest mover is the NZDJPY which is up by 125 pips or 3% and a sudden change in investor’s sentiment towards more risk taking is also helping other carry trade sensitive currencies. Yet, I think those gains will be short-lived and I’ll be looking for a pullback on all riskier assets including stocks, commodities and high yielding currencies. First, investor’s expectations that the world economy will emerge from this recession in the second half of 2009 are clearly overoptimistic. In fact, 2010 looks more like a realistic target. Second, the general idea that the world economy could receive a boost from China, India and Brazil and decouple in 2009 is very wrong. Just think about what happened in 2008 when China exports to the US and Europe fell at a record pace. Good luck with your trading.