Brazil is often called the emerging markets canary

Brazilian real absolutely crushed

The proverbial canary in the coalmine is the first thing to die when the air is toxic. Emerging markets are swimming in some kind of toxicity at the moment and none worse than Brazil.

President Dilma Rousseff is surrounded by impeachment talk and Petrobras 100-year bonds are yielding more than 10%. The economy is suddenly in shambles and the Brazilian real has been halved in the past year.

USD/BRL has risen for 5 straight days, broke the all time high yesterday and continued higher today.