Also, economists covering Brazil lowered their growth forecasts for 2013 and 2014 as the government struggles to restart the economy, Bloomberg reported this week.
Brazil will also continue to wrestle with inflation, the central bank economic department director says, according to a Dow Jones Newswires report.
However, on the technical side, there are some faint signs of home for EWZ, the Brazil ETF. The fund has carved out a bullish inverse head-and-shoulders pattern as it tests the 50-day moving average, notes Kimble Charting Solutions.
iShares MSCI Brazil Index Fund
Chart source: Kimble Charting Solutions.