USDBRL might be building its 3rd impulsive wave.
Not a financial advice.
To support Biden's plan "Invest in America", FED will need to keep raising interest rates to contain #inflation, and make it attractive for international investors.
Meanwhile, Brazilian economy is shrinking, with President looking to lower interest rates which it is what was done in 2003. but this time is indeed different, since the USA isn't willing to see its money plowing into emerging markets.
DXY
is also building a nice comeback. this is momentarily about to change in my POV.
To support Biden's plan "Invest in America", FED will need to keep raising interest rates to contain #inflation, and make it attractive for international investors.
Meanwhile, Brazilian economy is shrinking, with President looking to lower interest rates which it is what was done in 2003. but this time is indeed different, since the USA isn't willing to see its money plowing into emerging markets.
DXY
is also building a nice comeback. this is momentarily about to change in my POV.
Comment:
Second Important level just broke. Going for the first pivot point at $4.68
Comment:
The FED increased interest rates to 5.5% yesterday, coinciding with the first pivot point on the chart. The Brazilian government desires to lower rates to boost their economy, but this action may cause the
USD
to surge in value. While some Brazilians may benefit from this in the short term, it could lead to
USD
skyrocketing towards R$6 in the near future. We must keep a close eye on this situation.
USD
to surge in value. While some Brazilians may benefit from this in the short term, it could lead to
USD
skyrocketing towards R$6 in the near future. We must keep a close eye on this situation.
Comment:
Brazilian government lowered rates by .5, let's all watch but USD might be reversing above $5.
Comment:
It has been a month since the Brazilian government lowered interest rates, resulting in the USD gaining strength back to $5 momentarily. This is a crucial moment as inflation data in the USA is hotter than expected, putting the FED in a challenging situation. The
DXY
is breaking above 105, and with an increase in interest rates in the US, it is likely to push towards 110. If the Brazilian central bank lowers the interest rate again while the USA Fed raises it, USDBRL could test a high of 5.15, which is where the 500MA currently stands.
DXY
is breaking above 105, and with an increase in interest rates in the US, it is likely to push towards 110. If the Brazilian central bank lowers the interest rate again while the USA Fed raises it, USDBRL could test a high of 5.15, which is where the 500MA currently stands.
Comment:
Third wave starting to confirm. The global crisis that's coming, will be something studied many years ahead.
Comment:
Here we are at support again, and The FED is between the cross and the sword.
To make treasuries more attractive, they had to drop the USD and inject some liquidity in the markets, interesting that happens right after Brazil's drop interest rates for the second time. They want that money, but the world is on alert on the USD, just watch BTC and cryptos... Something is changing.
To make treasuries more attractive, they had to drop the USD and inject some liquidity in the markets, interesting that happens right after Brazil's drop interest rates for the second time. They want that money, but the world is on alert on the USD, just watch BTC and cryptos... Something is changing.
Coincidently the FED signaled two more rate hikes ahead.
I don't understand much about the bond market, but I imagine they are lowering the USD to lower their debt. And then after they sell it, and they raise the USD back up. They know their game.