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Posted by Tango
on August 7, 2019, 7:13 am
Selling was present at the bell but the market has since recovered and remains quiet and slightly steady. Forward bids are below the market and light forward selling has been entering the market late yesterday and this morning, possibly related to the drop in the Real which we have seen. Yesterday the market was steady, beginning at 8:00, but encountered the usual resistance. It’s possible that short covering and long liquidation were driving the market. Spreads are increasingly becoming active both as a result of forward outright activity and because of rolling. The Yuan today is again down but other BRIC currencies are higher. USDMXN is 19.5501 -0.0193 (-0.0986%), USDCOP is unchanged at at 3425.00 as is the Real at 3.9601 according to the CME. Just received an alert from FT stating that:
“Brazil pension reform passes critical lower house vote
Landmark legislation seen as essential to restoring investor confidence.”
Of course, this occurred yesterday probably and it could have been the reason for the steady Real and steady KC.
The more major currencies are all down against the $ except for the ¥. Oct gold is aiming at 1500.00, equities are up, oil is lower with Brent down to a $5 premium or so. Bond futures are higher. Grains are mixed and softs are lower.