News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.86%, while traders in EUR/USD are at opposite extremes with 74.29%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/gzrHLaRhHV
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: -0.07% 🇳🇿NZD: -0.10% 🇯🇵JPY: -0.15% 🇪🇺EUR: -0.22% 🇨🇦CAD: -0.24% 🇦🇺AUD: -0.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/zHVMRgn43I
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.41% France 40: -0.72% Wall Street: -0.75% US 500: -0.76% Germany 30: -1.20% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/qj3vTsWnmK
  • Wall Street Futures Update: Dow Jones (-0.55%) S&P 500 (-0.56%) Nasdaq 100 (-0.41%) [delayed] -BBG
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/WL12t7h392
  • Australian Dollar Capped By Resistance Ahead of Q3 Inflation Data - https://t.co/eVEnAxS6Nz $AUD $AUDUSD https://t.co/s6GKZvuypb
  • Australian Dollar Capped By Resistance Ahead of Q3 Inflation Data - https://www.dailyfx.com/forex/market_alert/2020/10/26/Australian-Dollar-Capped-By-Resistance-Ahead-of-Q3-Inflation-Data-.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $AUD $AUDUSD https://t.co/avW3lAP5Ts
  • Market Update $USD outperforming its major counterparts as risk appetite sours Cyclically sensitive $AUD and $CAD losing ground against their major counterparts #Gold sliding back below the $1,900/oz mark #CrudeOil down just under 1.5%
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: -0.11% Silver: -0.89% Oil - US Crude: -1.50% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/aZPk6tBHNb
  • #gold prices attempt to find support at US$ 1,900 amid sour sentiment. The prices remain in an "ascending channel" but risk appears to skew to the downside. The width of the Bollinger Band indicator has narrowed, signaling further consolidation is likely. https://t.co/gxGaxL7JwG
Trade War Fears, Copom Minutes May Pressure Brazil Stocks, BRL

Trade War Fears, Copom Minutes May Pressure Brazil Stocks, BRL

2019-08-06 01:30:00
Dimitri Zabelin, Analyst
Share:

BRAZIL STOCKS, COPOM MINUTES, US-CHINA TRADE WAR – TALKING POINTS

  • US-China trade war tensions are causing market pandemonium
  • Brazil equity markets feeling the pain with Copom minutes next
  • Key pension reform vote scheduled for Tuesday or Wednesday

See our free guide to learn how to use economic news in your trading strategy!

Brazilian stock markets will be in for a turbulent week ahead as US-China trade tensions flare up against the backdrop of a key vote on local pension reforms and the publication of the Copom meeting minutes. The benchmark Ibovespa equity index has fallen a little over 2.50 percent on Monday amid market-wide risk aversion from a deterioration in US-China trade relations.

Ibovespa Suffers as Trade War Tensions Escalate

Chart Showing Ibovespa

Ibovespa chart created using TradingView

Last week, Banco do Brasil slashed the benchmark Selic rate by 50 basis points, surprising on the dovish side of markets participants’ anticipation of a 25bp cut. The publication of the meeting minutes of the 9-committee council will likely contain a more detailed outlook for policy ahead. The text is expected to carry dovish undertones after officials signaled futures rate cuts amid uncertainty and progress on pension reforms and soft growth.

Officials in the lower house of Congress will be voting for a second time on the market-disrupting bill after it was approved in a first-round vote on July 10. Lawmakers are expected cast their ballots Tuesday or Wednesday. If it survives, the bill will then move to the Senate where it will be further scrutinized by the Constitution and Justice Committee before going through two more rounds of voting.

After reaching five-month lows in July, USDBRL has since recovered over 6.70 percent and is now coming dangerously close to the psychologically-significant 4.00 level. The pair reached this point in May and was briefly hovering at 7-month highs before retreating. However, if US-China trade relations continue to go proverbially South and pension reform data disappoints, traders may have enough courage to test 4.00 again.

USDBRL Aiming Critical Resistance

Chart Showing USDBRL

USDBRL chart created using TradingView

Fundamental headwinds may pressure commodity-linked and emerging market FX while supporting anti-risk assets like the US Dollar, Swiss Franc and Japanese Yen. Looking ahead, Brazil will have to carefully navigate the US-China trade war to avoid falling out of favor with either parties. Over forty percent of all Brazilian exports head to China, and the US is Brazil’s regional neighbor so maintaining cordial relations will be key.

FX TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES