Anyone in for some action in Emerging Markets? Real looks like it’s going to break through its previous 10 year high of 2.7607. That was only marked in November 2014. On January 21st the central bank hiked its key interest rate from 11.75% to 12.25% in an attempt to fight off inflation, that was the third straight raise since October last year. Last month’s YoY inflation was 6.41% With many forecasts expecting it higher on Friday’s figures.
Together with an economy which seems to be faltering, with industrial production in negative territory since March 2014, paints a negative picture for the Brazilian currency.
Day chart seems to look bullish, price just having bounced off the Ichimoku cloud despite all the recent rate hikes.

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