The Brazilian real is in huge demand, certainly helped by the huge yields on offer and with the carry trade working well anything with a high yield is bid

The Brazilian real is in huge demand, certainly helped by the huge yields on offer and with the carry trade working well anything with a high yield is bid. There has been a strong move in the pair after hitting a high of 2.4694 on January 29 and is now testing the uptrend from the 2011 low. When you see the JP Morgan FX volatility index at the lowest level since late 2012 the conditions are ripe for carry appreciation. Sell the break. While the real is flying, it's worth taking a look at the MXN (Mexican peso). Another currency with a strong yield it also has the advantage of liquidity, neutral positioning and has seen better data of late. There is an IPO process about to ramp up as well, which could see better capital inflows. If the carry trade continues in earnest, then the MXN is worth a look.