Monday, May 29, 2017

Dollar has soft spot, with caution before the policy framework

São Paulo – the dollar ended Friday in soft spot before the actual, breaking the sequence of two trading sessions in a row, with investors still wary of the brazilian political scene after the serious crisis that affects the Government of President Michel Temer. The dollar retreated to 3.2654 real 0,54%, on sale, after accumulating high of 0,51% in its past sessions. In the week, accumulated elevation of 0,25%. The dollar future had fall about 0,40% in the late afternoon. "The market is teetering on time between 3.25 and 3.30 dollars. The investor has his eye on the Hill, waiting for the outcome of the crisis and not is setting up new positions, "said Spinelli Corretora brokerage operator José Carlos Amado. The market has been working with the expectation that Fear let the Presidency by the Superior Electoral Court (TSE), which will judge the appeal of Dilma Rousseff plate-Fear the next day 6, and that your replacement be a consensus with ability to give progress social security and labor reforms. Reuters research took that pulse, with just two of the 30 economists polled between 24 and 26 May, believing that Fear will complete your mandate at the end of 2018. Even so, the picture remains favorable for the sharp drop in interest rates, for the reduction of the inflation target and even for the approval of changes in welfare, added the survey. "If the reforms enter route of approval in Congress, no matter the Chief Executive, we have quotes under 3.15 reais again," said the broker Lerosa in report. Fear comes repeating that does not intend to leave office and works to try to give continuity to the Government''s agenda in Congress. He is the target of investigation in the Supreme Court (STF) for passive corruption, criminal organization and obstruction of Justice, in open investigation based on agreement to Snitching closed by businessman Joesley Batista, one of the owners of the JBS. The President had a conversation recorded by the Executive. The decline in American currency in this session, some professionals also was favored by timely flow of resource input. But the caution will continue prevailing, also because of the proximity of the weekend and before the Memorial Day holiday in the United States next Monday, which will keep the markets there closed. In the final session, the retreat of the dollar lost strength against the real after the news that the President of the Banco Nacional de Desenvolvimento Econômico e Social (BNDES), Maria Silvia Bastos Marques, resigned, citing personal reasons. "That fed a bit of caution, since the market does not know what motivated the removal," said the operator of h. Commcor, Cleber Machado Alessie. The Brazilian Central Bank sold on Friday another batch of foreign exchange swaps traditional 8000 – equivalent to the future sale of dollars, completing 3.6 billion of expiring contracts scrolling June totals 4.435 billion dollars.
Exame - 26/05/2017 News Item translated automatically
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