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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
- We previously saw that one of the major risks for EM equities was a constant appreciation of the USD as Fed prepares for tapering.
- The USD has been rising broadly since June, which led to a constant depreciation on the BRL, down 5.5% against the greenback since then.
- As a result, Brazilian equities have also been consolidating lower in the past 4 months, down nearly 15% since its record high reached in early June.
- The chart below shows that periods of BRL weakness have usually been associated with falling equities (and vice versa).
- Hence, can Brazilian equities rebound higher if USD keeps strengthening ?
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.
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