HALISTER1: Brazilian Real Slides Amid Weak Data, Lack of Flow: Analysts

Brazilian Real Slides Amid Weak Data, Lack of Flow: Analysts

(Bloomberg) -- Worse-than-expected activity index, along with lack of flows in early trading, helps to weaken Brazil’s currency, analysts say.
  • Currency reversed gains as inflows that boosted prices in the last two days aren’t being seen this morning; BCB’s 5,000 FX reverse swaps auction also weighs, Italo Abucater, FX trading head at Icap Brasil, says in a e-mailed interview
    • BRL may resume gains when inflows are back; potential hike by Fed near year-end risks to reverse currency rally
  • NOTE: July activity index IBC-Br -0.09% m/m, est. +0.2%
  • “We expect the economy to continue to face headwinds from exigent financing conditions, a weak labor market, high levels of household indebtedness, weak external demand, and still-contained consumer and business confidence,” Alberto Ramos, chief Latam economist at Goldman Sachs, wrote in a note to clients
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Italo Abucater (ICAP PLC)
Alberto Ramos (Goldman Sachs Group Inc/The)

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