Trade Update: Short the Brazilian Real


This morning I wanted to revisit Rich Ross' currency call on shorting the Brazilian Real ( BRZ ) and cut right to the chase to the bottom line.

[caption id="attachment_69655" align="alignright" width="220" caption="Investors must be aware of what effect currencies can have on stock prices, especially lately for stocks that have exposure to the real"] Image Courtesy Benjamin Thompson: [/caption]

We are looking at a key technical move but wouldn't be happening if Brazil's government wasn't letting it happen.

The government is comfortable with inflation and is continuing a fiscal adjustment that aims to make the economy more competitive, chase out foreign speculative money flows, and to reset domestic utility pricing and concessions.

This was an important break higher and it could go to 2.20 in my view.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , International , Stocks

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