ridethepig

COP risk premium low in EM space

Long
ridethepig Updated   
FX_IDC:USDCOP   U.S. DOLLAR / COLOMBIAN PESO
=> Here we are tracking a break to the upside in USDCOP with a target of 3223
=> This flow is trading the recent underperformance in Columbia and playing it against USD strength via inflation and bond to equity flows.
=> This should be a quick and sharp move with low political risk in Columbia and upside in Oil prices being capped for now.(edited)
=> If risk rises globally we see COP getting hammered and experiencing real pain with the knife being stuck in because of the low carry and less hawkish BanRep(edited)
=> Good luck to those few who are trading this cross
Trade closed: target reached:
TP Hit... clean and simple ride

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