BRL during the Summer Olympics 2016

1 September, 2016

BRL during the Summer Olympics 2016

The FIBO Group financial experts were keeping a wary eye not only on the sports achievements of the Olympics in Rio, but also on the national currency of the Olympics venue – the Brazilian real.

The 2016 Summer Olympics were held from 5 August to 21 August. During that time the Brazilian real (BRL) strengthened significantly against the US dollar. However, the sellers managed to take the considerable part of the previously lost positions back by the end of the tournament. Moreover, it is important to take into account that traders trade not only facts but expectations as well. As practice shows, the activity on the financial markets may increase significantly by trading on expectations. And there was no exclusion in this case – the Brazilian real had started to strengthen actively even prior to the Summer Olympics opening ceremony in Rio de Janeiro.

That was a pretty much expected market reaction as the abnormal influx of tourists such as athletes, their supporters, as well as the overall investment fund would, obviously, help to support the national currency.

Therefore, at the beginning of July the exchange rate for the currency pair USD/BRL reached the maximum level of 3.6260. Although, by the middle of the Olympics, August 10-11, the currency pair rate reached its minimum at 3.1160. Thus, it can be noted that the strengthening of the Brazilian currency was slightly more than 14% in the first 8 weeks of the summer. However, by now the buyers of the USD/BRL currency pair have managed to recover a part of the earlier lost positions, as the prices reached 3.2460/80, which is the maximum level before the opening of the Olympics.

Moreover, the traders should consider the fact that weakening of the currency pair prices was caused not only by the strengthening of the Brazilian currency, but also weakening of the US dollar. Therefore, the end of the Summer Olympic Games would become a negative factor for the Brazilian currency, as the outflow of tourists would reduce the demand for BRL, thereby providing the additional support for the currency pair prices. At the same time, the potential of the US dollar strengthening in the medium term would contribute to the strengthening of the currency pair.

The return of the prices to the level of 3.2200/150 cancels the “bull” trend and we may anticipate further weakening of the currency pair prices.

The most recent analytical reports can be found on our website.


Source link  
New payment system BITPAY

FIBO Group company is glad to announce the implementation of...

FIBO Group launches MT4 web version

We are glad to present to your attention MetaTrader 4 terminal...

New account type: MT4 NDD No Commission

The account operates using the No Dealing Desk technology...


Windows 10 Creators Update

We attract your attention that before installing Windows 10 Creators Update you should save passwords for MetaTrader trading account in a safe place....

Interview with the iPad Air 2 draw winner

During the all last year FIBO Group company was holding iPad Air 2 draw on its official page on Facebook. To participate in it one should have shared the information about the contest...

Improvements in trading terms for CFD's on the German 30 Index

The company FIBO Group has reduced the size of the spread by 2 points for the CFD, which is based on the German 30 index. We are confident that it will make trading more dynamic and profitable. The CFD on the German 30 index is available on the trading accounts MT4 Fixed, MT4 Floating, and on the MT4 NDD now as well...


New trading instruments on MT4 NDD account

FIBO Group company is glad to announce that we added new trading instruments on MT4 NDD accounts. From February 20 11 CFDs on commodities, including CFDs on gold, silver and oil and 8 CFDs on indices became available...

New possibilities with FIBO Group: trading account in gold

FIBO Group is glad to announce that now you can choose gold as a basic currency of your trading account. Gold is one of the most stable actives, so by converting your deposit into GLD you gain confidence and safety from negative factors of economic or political instability...

Analitics in Persian language from FIBO Group

The key to successful trading in Forex is the possibility to employ professional analysis of economic and political news and financial statistics for more precise prognostics of trading instruments price movements...

  


Share: