The Weekender
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Weekly Winners & Losers: Pop Quiz
What is the biggest quiet influencer in markets today?
Answer: CURRENCY RELATIONSHIPS
Currencies are generally out of sight, out of mind.
We know the strength of the US dollar has presented all sorts of headwinds for US exports the past 12 months, but we rarely stop and look at the Brazilian real and its impact on markets.
A Winner: The Brazilian real has gained 5.7% on the US dollar since the start of 2023
A Loser: Not that anyone needs a reminder, but nearby Soybean futures have fallen 14% year-to-date
Both a Winner & a Loser: Factoring in both board losses AND the real’s appreciation since the start of the year, soybean futures in Brazilian real are down 21% year-to-date and at their lowest level since late 2020
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