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11 Mar 2014
Latin America EM Express: Brazilian real up following Petrobras bond sale
FXStreet (Łódź) - Brazilian multinational energy corporation Petroleo Brasileiro (Petrobras) managed to raise $8.5 billion dollars during a debt auction on Monday. The company is currently the largest debt issuer in Latin America, accounting for 40% of sales. The capital raised at the auction is to be used to finance a massive investment plan for the next five years, which according to the WSJ “is focused on the development of large offshore oil fields.”
Economic data
On Tuesday Brazil released Industrial Output data which showed a 2.9% increase in January, compared with the 3.7% drop in December. On an annual basis the volume of production of Brazilian industries fell 2.4%, slightly down from the previous reading of -2.3%.
On Monday Peru Central bank informed that the Peruvian Trade deficit was at USD 782.80M in January, following a USD 480.40M surplus in December.
Technicals
The news of the Pertrobras bond sale was positive for the Brazilian real which yesterday rose the most among EM currencies. It appreciated 0.3% to 2.3433 against the US dollar following the auction.
The USD/BRLdaily FXStreet Trend Index is neutral, and the OB/OS Index neutral as well. RSI is neutral at 47.0112 at the last close. Daily 2-StDev Volatility Bandwidth is expanding at 292 pips, with ATR (14) expanding at 280 pips. The 1D 200 SMA is at 2.2953, while the 1D 20 EMA is at 2.3549.
Economic data
On Tuesday Brazil released Industrial Output data which showed a 2.9% increase in January, compared with the 3.7% drop in December. On an annual basis the volume of production of Brazilian industries fell 2.4%, slightly down from the previous reading of -2.3%.
On Monday Peru Central bank informed that the Peruvian Trade deficit was at USD 782.80M in January, following a USD 480.40M surplus in December.
Technicals
The news of the Pertrobras bond sale was positive for the Brazilian real which yesterday rose the most among EM currencies. It appreciated 0.3% to 2.3433 against the US dollar following the auction.
The USD/BRLdaily FXStreet Trend Index is neutral, and the OB/OS Index neutral as well. RSI is neutral at 47.0112 at the last close. Daily 2-StDev Volatility Bandwidth is expanding at 292 pips, with ATR (14) expanding at 280 pips. The 1D 200 SMA is at 2.2953, while the 1D 20 EMA is at 2.3549.