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BRAZIL: USDBRL Prints 5.9994 High as Markets Brush Off Fiscal Plan

BRAZIL
BulletEM BulletEmerging Market News
  • Brazil’s fiscal announcement overnight has been unable to provide any support to the waning Brazilian real. USDBRL (+0.58%) appreciated to a new record high of 5.9994 on the open, however the pair has reversed lower in recent minutes, to 5.96 at typing.
  • This week’s rally strengthens the uptrend and confirms a breach of resistance at 5.8750, the Nov 1 high. A break of the psychological 6.00 level would open 6.0257, the 2.00 projection of the Aug 19 - 30 - Sep 19 price swing. The 2.236 projection is at 6.1000.
  • Analysts have been sceptical that the absence of changes to the unemployment insurance programs suggests Haddad not only lost the battle to his counterparts in the cabinet, but also lost the communication battle following leaked details on tax exemption late Wednesday.
  • Latest comments from Haddad explain how Lula listened to the economic team and won’t give up fiscal responsibility. Congress are expected to debate the income tax reform in 2025.
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  • Brazil’s fiscal announcement overnight has been unable to provide any support to the waning Brazilian real. USDBRL (+0.58%) appreciated to a new record high of 5.9994 on the open, however the pair has reversed lower in recent minutes, to 5.96 at typing.
  • This week’s rally strengthens the uptrend and confirms a breach of resistance at 5.8750, the Nov 1 high. A break of the psychological 6.00 level would open 6.0257, the 2.00 projection of the Aug 19 - 30 - Sep 19 price swing. The 2.236 projection is at 6.1000.
  • Analysts have been sceptical that the absence of changes to the unemployment insurance programs suggests Haddad not only lost the battle to his counterparts in the cabinet, but also lost the communication battle following leaked details on tax exemption late Wednesday.
  • Latest comments from Haddad explain how Lula listened to the economic team and won’t give up fiscal responsibility. Congress are expected to debate the income tax reform in 2025.