The Treasury market is already nervous and we have data coming out that can make the market even more stressed. Some of the stress in the U.S. has been passing through the market here.

Investors are buying dollars to book gains after the real rose for five straight sessions.

In the short-term the currency is going to take its lead from the U.S. 10-year Treasury notes. All the focus is on the U.S.

A rise in the 10-year Treasury note is leading investors to flee from Brazil, which is more risky.

There is still room for the real to gain. The Fed comments increased foreign investment into Brazil.

We are having a negative bout in stocks, especially U.S. stock markets, and that is making investors a bit more cautious. With Brazil's trade surplus being driven by commodities, the drop in prices there is also hurting us.