Brazil under pressure…..AGAIN
Brazil spot opened 4 big figures higher as the previously announced reversed swaps and the statments by President Lula regarding his finance minister hit the airwaves. President Lula said last night that the countries economic policies had more to do with the government and less to do with Palocci (Fin Min). This has fueled spectulation that a resignation is imminent. The rest of Latin America is having a similar effect with a weakening of the currency against the dollar occuring everywhere.
Brazil CB steps up its intervention
The Brazilian CB announced after the close today that they were going to offer $525million currency contract’s tomorrow between 9-10 am. This is in addition to the currency intervention which has been taking place most days at around noon New York time. With year end approaching it could be time for a little unwinding of the long Brazil trade which most market participants have had on all year.
These are the FX TRADING IDEAS for today.
FXTRADINGIDEAS@AOL.COM
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