USDBRL has found itself back at all-time highs

USDBRL has found itself back at all-time highs as China’s weakness is most clearly seen in this region in Brazil. Mondays in the month oil run or ‘OPEC rally’ propped up a few LATAMFX currencies against the US dollar most notably the Colombian peso, which dropped significantly on light liquidity as oil rose nearly 25% and a three day span alongside with USDMXN, that came down to notable support of 16.60 before resuming the larger trend as Oil did on Tuesday. In Brazil, the fiscal situation is getting dreadful, as not only the government proposed a -0.5% of GDP primary deficit in its 2016 budget draft, but the details have many looking for the nation to possibly face a junk rating, which will make needed capital harder and more expensive to obtain. The Brazilian Riau has led declines against the USD verse major dollar counterparts.