Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
BRAZIL
- While we tend to find the existence of a 'Pavlovian' relationship between the currency and the equity markets for most of the EM economies (stronger currency tends to be associated with higher equities and vice versa), it has not been the case for Brazil.
- While the BRL has been constantly weakening in the past few years amid rising political and economic uncertainty, equities have been trending higher.
- To the exception of the March panic when both the BRL and Ibovespa experienced significant drawdowns, the trend on Ibovespa has been steady.
- The chart shows the interesting divergence since the March 2020 panic between the equity market, which is approaching its all-time high, and the BRL, which is currently trading close to its historical lows relative to the USD.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok