The Brazilian real weakened to 4.22 per dollar, from 4.17 per dollar on Friday.
Economist Andre Perfeito, from Necton brokerage, says it will end the year at
4.30 per dollar. He points to deteriorating current account balance released
today by the central bank showing a shrinking trade surplus that could worsen if
the economy rebounds, as expected. Perfeito says the depreciation stems also
from historic low interest rates in Brazil, which make the real less attractive
for carry trade. Perfeito notes, however, that the central bank's robust $357
billion foreign-currency reserves can avoid a full-blown crisis.
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
No comments:
Post a Comment