Friday, September 26, 2008

Bovespa under pressure

The Bovespa is under pressure today and the spot market initially reflected this, with the currency trading considerable weaker against the dollar. The current level is 1.8520 after touching 1.8730 earlier in the session. The reason for the reversal was that the Central Bank announced a 500 mio usd repo auction for today. This pumped dollars into the system. These are dollars the CB has been collecting for years now and are letting back into the market at a time that is needed the most.

I still like the dollar moving higher here, but there could be a pull back near term.

Good Luck and Good Currency Trading



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