“We’re in the midst of an international currency war, a general weakening of currency. This threatens us because it takes away our competitiveness,” Mr Mantega said. By publicly asserting the existence of a “currency war”, Mr Mantega has admitted what many policymakers have been saying in private: a rising number of countries see a weaker exchange rate as a way to lift their economies.I will take a pass on the win/win situation. Have a good night.
Funds that were under exposed to the recent move higher are now chasing beta at any price. This is not something that is typically seen at bottoms. Additionally, protectionism is starting to rear its ugly head, which could possibly be the theme of the next correction. The following quote in the FT from the Brazilian Finance minister caught my attention