Exotic currencies

Taking the zar swaps, gold and fed meeting in to consideration i think USDZAR could make a strong move today/tomorrow. If not up to fed then probaby on fed. But also depends on what fed says.

expecting a strong B wave for eurzar

EUR/TRY H4

usdmxn

One question I have, Why do we regard MXN, CNY, SEK, RUB, HKD, NOK and SGD as Exotic? They are all top 15 traded currencies according to wikipedia.

Is that because the retail forex market don't trade them as much as the big banks and so our spreads are much worse? for example NZD have marketshare 2% out of 200% and the SEK has 1.8% so about the same right? but my forex retail broker give me way better spreads on the NZD.

CAD/ANG (daily)

I never trade on those exotic currencies, and I think it has less volatility too, so it will be hard to make profit from it. And I never learn about the characteristic of exotic currencies but you guys are very good at those pairs.

some pairs are really exotic.. but it seems to me that it's easier to earn on more popular pairs, but it's interesting to study this thread) subscribe)

Nice hammer on daily. Buy.

Too many people focus on the same instruments. We must look where others have no vision. In this way we see the truest image.

Anyway, anyone focus on the BRL? This is a great currency, plus the Geopolitical events are very predictable.

Please revive this thread!!!

A

Hong Kong for the first time since 2005 held an intervention in the foreign exchange market.

The Hong Kong dollar against the US dollar has reached its lowest level since 1983 and checked the red line of the Hong Kong Money Management Office (HKMA) for strength. USDHKD peaked at 7.85, which forced HKMA to intervene for the first time in several years. The regulator sold $ 104 million and bought out 816 million Hong Kong dollars on the market.

"HKMA is fully able to maintain the stability of the Hong Kong dollar and cope with large-scale cash flows," said HKMA chief Norman Chan. "I repeat that HKMA will buy Hong Kong dollars and sell US dollars at around 7.85 to ensure that the Hong Kong dollar rate does not fall below 7.8500."

It is worth noting that HKMA has enough resources to maintain the USDHKD rate established by it at 7.75 - 7.85. The Monetary Fund of the Monetary Authority of Hong Kong boasts one of the largest reserves in the world - their volume is $ 513 billion. Speculators do not show a visible desire to test the ability of HKMA to defend the limit of the acceptable range, but the main driver of the prolonged weakening of the Hong Kong dollar remains: the differential of Hong Kong and US rates is on the maximum level since 2008 and attracts the curry traders.

USD/HKD

1000 pip range and currently at the top, I'm tempted to short

Hello guys,

No one following TRY/JPY ?

Fundamentally going down but I suspect a reversal soon. Will probably start building long. That's long-term trade idea with exit around September.
As soon this thing stabilises a bit, carry trade also possible as well since long positions are credited with overnight interests. Not a lot of pairs offer cool positive overnight interest. Funky macro stuffs have pushed TRY down for a while, reaching deep lows, and from technical and fudamental perspective, it might be up for a little retrace. Potentially 23.6 to 38.2 fibo levels on a weekly chart. Will post graphical view later on.

Anyone on this already?

The beauty of exotic currencies or rather exotic pairs is the attracting potential for carry trades.
Collecting overnight interest on the borrowed currency leg and collecting interests on the long currency leg can be performed.
Here below a little table. Ideally borrow the negative rate currency to long the other end of the table with the highest interest rates.
The cool thing is usualy on Wednesday, 3 overnight days in a row are accounted. Let's open just before 22pm GMT and close a few seconds after and you collect 3 ful days interest calculated on the nominal value of the trade. (CFD's are leveraged right). Take 1 lot, lock only a fraction of the amount as margin but collect the interest on the full 1 lot (aka 100k of the targeted ccy).

Let's say JPY has negative interest rate and TRY offers the maximum interest, then going long TRY/JPY (=borrow JPY to hold TRY) means you get paid interest to borrow JPY + paid for holding TRY.

Off course there is a downside. As usual if the pair moves against you, that's not cool. But if a pair has been going super down for a while and start to reverse, then that's the sweet spot to be ! Have fun !
That's about capital use optimization and looking to reap each little cent out of it. There is no little profit !

Some pictures for EURHUF and HUFCHF

Some pictures for USDHUF

Currently in the AUDMXN

Initially, this was a trade I wanted to get out of slowly but thanks to a dovish RBA this is panning out nicely



I have removed half and riding down the stop; if it can get past the red zone then this will be a big winner, which looks likely for the following reasons:

 

1. MXN: USMCA deal resolution
2. AUD: Dovish RBA