Real climbs further on economic expansion forecasts

Real climbs further on economic expansion forecasts

09-04-2009 14:45

Earlier this week the Brazilian Real lost the majority of its prior two months gains, while today it climbed further from yesterday, prompted by predictions demonstrating that seven of the main global economies will show a less considerable decline. The Loonie rose strongly today, after reaching the weakest level in nearly two months, as a result of a report implicating that employment in Canada increases, which was unexpected but positive news for traders and analysts.

Real climbs further

The Brazilian Real continued yesterday’s rally this Friday, due to positive results in Chinese equities and on the back of predictions implicating that the global economy could recover earlier, reducing the majority of last week’s losses, when it traded in the lowest rate in nearly eight weeks.

Job numbers

Canada ended this week rather optimistic as employment increased more than was forecasted in August, which is a key indication for the nation’s economy considering the fact that there are countries that show economic improvement while they continue to face major problems in employment. Last week, the Canadian central bank stated that it does not exclude measures to end the appreciation of the Canadian Dollar and that the present rates could have a negative impact on the revival of the country’s economy, on which the Canadian Dollar fell sharply as it declined over 3% within one week.

Loonie gains

This Friday’s numbers created quite favorable circumstances to obtain the Canadian Dollar as the downtrend was severe and extensive. The employment report stimulated a corrective movement, since traders could regard the levels ahead of the report as too weak. The Loonie could continue its rally in the near term if more positive data occur. Nevertheless, the Bank of Canada will probably take measures to prevent a further appreciation if the Canadian Dollar grows stronger.