By Jose de Castro
Sao Paulo (Reuters) – The currency closed slightly higher against Wednesday, with the first session in September taking a break from investors’ assessment of a situation involving the same risk factors over the past few days – the financial situation / domestic policy and the possibility of easing stimulus in the US.
The dollar was up 0.20% at 5.1826. During travel, it varies between 5.1904 rais (+ 0.35%) and 5.1424 rais (-0.58%).
The currency came in from seven falls in eight sessions, during which time it retreated 4.62%.
The market reacted in a limited way to the Brazilian figures for the second quarter, which showed a numerical contraction compared to the previous quarter, but the downside revisions in economic ratings in the coming days of risk are gaining strength and affecting real estate.
This Wednesday, the Swiss loan (SIX 🙂 Lowered forecasts for GDP this year and next.
In the short term, operators will monitor U.S. unemployment data on Thursday and statistics from the monthly U.S. employment report on Friday.
On Wednesday, data from the private labor market in the United States was much weaker than expected and the dollar depreciated over several weeks. The market estimates that the new wave of lower-than-expected indicators should strengthen the notion that the US will keep the $ 1 billion cash stimulus in progress until the end of this year.
Here, the currency is in the zone of support, which must be broken before further decline, especially after the recent series losses.
Previously, maturity matured, close to a high of 61.8% (approximately 5.12 rais) (5.1375 rais) between the decline of June and the peak of August due to the Fibonacci restructuring. A fall below that level could trigger automated sales orders, which could push the dollar’s futures to a low of 5.04 riyals in July.
“The dollar failed in its attempt to surpass the May peak,” Karen Jones of the Technical Analysis Group at Commercebank said in a statement.
“Falling below the 5.0408 rice rate at the end of July will put the June low of 4.8932 at the table again,” he added.
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