http://www.forexconspiracyreport.com/fall-of-the-brazilian-real/ Fall of the Brazilian Real

1. Fall of the Brazilian Real
By: www.ForexConspiracyReport.com

2. We often comment that the most
profitable foreign currency trading
comes from trading the most
profitable currency pair.
By: http://www.forexconspiracyreport.com/fall-of-the-brazilian-real/

3. All of the skill in the world at
fundamental analysis and skill at
trading Forex with Candlesticks is
of little use if a currency pair is
trading sideways.
By: http://www.forexconspiracyreport.com/fall-of-the-brazilian-real/

4. As the US Federal Reserve
considers cutting back on its
quantitative easing programs
interest rates are going up in the
USA and this has had the effect of
further accelerating the fall of
Brazilian Real.
By: http://www.forexconspiracyreport.com/fall-of-the-brazilian-real/

5. The fall of the Brazilian Real is not
just tied, however, to US interest
rates. A weakening Chinese
economy requires fewer raw
materials which has hurt Brazil and
the speculation that goes with an
overheated economy has also done
its part as the South American
economy tries to right itself.
By: http://www.forexconspiracyreport.com/fall-of-the-brazilian-real/

6. Currently the Real trades at 2.4 to
the US dollar which is as weak as it
has been for four and a half years.
By: http://www.forexconspiracyreport.com/fall-of-the-brazilian-real/

7. The central bank of Brazil is
attempting to support the Real by
injecting over three billion into
Forex funds. In the meantime the
fall of the Brazilian Real presents a
trading opportunity.
By: http://www.forexconspiracyreport.com/fall-of-the-brazilian-real/

8. What Went Wrong?
By: http://www.forexconspiracyreport.com/fall-of-the-brazilian-real/

9. Brazil was doing great. People
talked about the Latin American
super power. The B in BRICS
stands for Brazil and many expect
or expected to see these nations
rise to the economic and political
eminence of Western Europe and
North America in a generation.
By: http://www.forexconspiracyreport.com/fall-of-the-brazilian-real/

10. Now growth is slow or non-
existent in Brazil. Inflation is high.
The final nail in the coffin seems to
have been the announcement by
the US Federal Reserve that it will
cut back on its $85 Billion a month
bond buying program.
By: http://www.forexconspiracyreport.com/fall-of-the-brazilian-real/

11. This has made interest rates in the
USA more attractive and hurt the
Real. The fall of the Brazilian Real
is not the only story here. India has
been hit hard as well and the
looming Chinese real estate bubble
threatens to damage the Yuan.
By: http://www.forexconspiracyreport.com/fall-of-the-brazilian-real/

12. The bottom line is that these
nations were prospering by selling
to North America and Europe.
When the two largest economies in
the world slowed with the worst
recession in 75 years growth
slowed and even reversed in their
suppliers.
By: http://www.forexconspiracyreport.com/fall-of-the-brazilian-real/

13. Trading the Fall of the Brazilian
Real
By: http://www.forexconspiracyreport.com/fall-of-the-brazilian-real/

14. Brazil has a slowing economy and
inflation. These factors serve to
drive the Real down. On the other
hand the central bank of Brazil has
raised interest rates in an attempt
to keep capital at home.
By: http://www.forexconspiracyreport.com/fall-of-the-brazilian-real/

15. The bank has purchased its own
currency in the Forex markets in
an attempt to support its price. It
has done this to the tune of $41
Billion in the last three months.
By: http://www.forexconspiracyreport.com/fall-of-the-brazilian-real/

16. Nevertheless the Real has fallen ten
percent versus the US dollar during
that time. If you want to make
money on the fall of the Brazilian
Real keep track of events in Brazil
and the USA. Then track the price
of the Real versus the USD with
technical tools.
By: http://www.forexconspiracyreport.com/fall-of-the-brazilian-real/

17. Whereas Latin American economic
growth drove the Real and other
currencies up an economic
slowdown is likely to continue and
the fall of Brazilian with it. Experts
are predicting 2.45 Reals to the
dollar.
By: http://www.forexconspiracyreport.com/fall-of-the-brazilian-real/