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Posted by Tango
on February 1, 2019, 7:10 am
The bell rang with selling present, it set the low slightly under settlement and buying emerged at 5:30 EST and at 5:45 in RC to lift prices close to the high of 107.15 made a week ago. The steadyness occurred in conjunction with an easing $, but not a stronger Real, and with early options activity. The depth of market favors the sell side in March and in forwards. Yesterday the few times that I could observe the market it felt like selling was dominant but it did not turn out to be the case. 70 % of the May activity was outright trading. Itís possible that the funds were covering and may continue again today. Weíll see. If so, the selling will be replaced by longs. Ultimately the market will again need to prove itself if it is a reversal or is at the highs of the channel. The major currencies continue to be mixed but rendering a lower DX. Most EM currencies are weak as well however including the Latin American currencies. USDMXN is 19.1451 +.0393, USDCOP is 3104.50 +1.25 and USDBRL is 3.6614 +.0175 +.48%. Bond futures are higher, oil is unchanged and equities are lower. Cotton and sugar are lower while cocoa is higher.
The article posted by JuanV about Bolsonaro provoking the truckers may have implications for the market. Letís see how they respond. What are the average take home earnings of truckers in Brazil?
The market is easing and close to unchanged.