MNI: US Consumers See Lower Inflation, Better Jobs - NY Fed

MNI BRIEF: Risks To Growth Evident, Await Dec Forecasts -Rehn

MNI China Daily Summary: Tuesday, November 12

MNI BRIEF: Prolonged Tightening If Expectations Worsen - BCB

MNI: PBOC Net Injects CNY107.2 Bln via OMO Tuesday

MNI: PBOC Sets Yuan Parity Higher At 7.1927 Tues; +1.32% Y/Y

EZ/UK Bond Supply Calendar: IT, UK, DE, PO Auction Wednesday

MNI: US REDBOOK: NOV STORE SALES +4.8% V YR AGO MO

MNI: CANADIAN SEP BUILDING PERMITS +11.5% MOM

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

FED: Powell's Time Looks Up, Replacement Could Be Less Willing To Cut Rates?

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

BRAZIL: CIBC See USDBRL Spikes to 5.80 as Attractive to Re-Enter Shorts

BRAZIL
EM BulletBulletGlobalEmerging Market NewsRegion
  • CIBC believe that as USD/BRL moves closer to the year-to-date highs around 5.88, they see a high probability of central bank action, either intervening directly in the spot market or indirectly via FX swaps.
  • Therefore, with the market already pricing in elevated fiscal risks, the BCB set to increase the magnitude of rate hikes (50bps exp. next week), and the BCB’s ability and willingness to intervene in the FX market, CIBC see the BRL’s carry as attractive enough to re-enter short USD/BRL positions on spikes at 5.80.
87 words

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.
  • CIBC believe that as USD/BRL moves closer to the year-to-date highs around 5.88, they see a high probability of central bank action, either intervening directly in the spot market or indirectly via FX swaps.
  • Therefore, with the market already pricing in elevated fiscal risks, the BCB set to increase the magnitude of rate hikes (50bps exp. next week), and the BCB’s ability and willingness to intervene in the FX market, CIBC see the BRL’s carry as attractive enough to re-enter short USD/BRL positions on spikes at 5.80.