BLUE LINE = BRLUSD

Prices continued their slide, establishing an 8.05c range. The net change was -3.45 as the market found strength on the last day after hitting the low for the period. Strength remained for the remainder of the week but not without selling interest as we approached April option expiration.

The selling was entirely spec in both markets and it consisted of both liquidation and new selling. The one exception was in the Other Reportable category who covered shorts but were net sellers as well. The buyers were, of course, commercials. Some of the buying may have been consumer related. There seemed to be origin selling as well as prices rose. Front spreads remained offered while forward spreads remained bid. As a result, the K OI was down while the total OI increased.

The period was filled with news from Brazil of a political nature which impacted the Real. There was friendly fundamental news but this seems to be more related to ‘22. The macro is a factor as fears of raging inflation have subsided and bond prices have stabilized. The market closed steady on Friday likely because of delta short covering. Going forward, funds will continue to drive prices while commercials hedge their delta.