Free Trial

BCB’s Galipolo Says Weakening BRL Remains A Point Of Concern

BRAZIL
  • BCB Director Galipolo spoke earlier, saying that the weakening real remains a point of concern for policymakers, along with the de-anchoring of inflation expectations. He noted that the real is depreciating faster than peers, but added that the floating FX is able to absorb the repricing of assets. He said that policymakers remain focused on anchoring inflation expectations back at target.
  • Despite his comments, BRL has continued to underperform today, with USDBRL up 1.5% on the day and rising close to 5.60 round number resistance in recent trade. A break of this level would signal scope for a move towards 5.6428 - the 1.236 projection of the Dec27 '23 - Apr 16 - May 3 price swing.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.