MNI: BOWMAN: UPSIDE RISKS TO INFLATION REMAIN PROMINENT

MNI: BOWMAN: MEASURED CUTS WOULD AVOID REIGNITING INFLATION

MNI: FED GOV BOWMAN WANTS MORE MEASURED APPROACH TO RATE CUTS

MNI NBH WATCH: 25 Basis Point Cut, Outlook "Unchanged"

MNI BRIEF: Market Reaction On Fiscal 'Exaggerated'-BCB Campos

MNI CNB WATCH: 25bps Cut Seen As Fine-Tuning Continues

MNI: US CONF BOARD CONSUMER CONFIDENCE 98.7 IN SEP V AUG 105.6

Economic Data Calendar

MNI:US JUL FHFA HPI SA +0.1% V +0.0% JUN; +4.5% Y/Y

CANADA: Politics Week: Parliament Opens With Early Election Threats

AUSTRALIA: Albanese Lines Up Budget for May Election

AUSTRALIA: Albanese Lines Up Budget for May Election

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

BRAZIL: USDBRL Rises 0.9% As Fiscal Concerns Mount Again

BRAZIL
EM BulletBulletGlobalEmerging Market NewsRegion
  • The Brazilian real remains under pressure today, following the disappointing bi-monthly fiscal report on Friday, in which the government reduced the size of its budget freeze for this year and allowed for additional expenditure. Officials are due to hold a press conference shortly to discuss the bimonthly report.
    • USDBRL rose by 1.5% on the open to a high of 5.5971, before paring gains, with the pair currently 0.9% higher on the day at 5.56. The move has further narrowed the gap to resistance at 5.6917, the Aug 30 high and a bull trigger.
    • Meanwhile, DI swap rates have risen another 10bp in the belly of the curve, taking the move over the last week to around 50bp, amidst the renewed fiscal concerns and following a further increase in year-end Selic rate expectations in today’s Focus survey.
    • Looking ahead, attention turns to tomorrow’s Copom minutes, followed by mid-month IPCA inflation data on Wednesday. The BCB is then due to publish its quarterly inflation report on Thursday.
162 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.
  • The Brazilian real remains under pressure today, following the disappointing bi-monthly fiscal report on Friday, in which the government reduced the size of its budget freeze for this year and allowed for additional expenditure. Officials are due to hold a press conference shortly to discuss the bimonthly report.
    • USDBRL rose by 1.5% on the open to a high of 5.5971, before paring gains, with the pair currently 0.9% higher on the day at 5.56. The move has further narrowed the gap to resistance at 5.6917, the Aug 30 high and a bull trigger.
    • Meanwhile, DI swap rates have risen another 10bp in the belly of the curve, taking the move over the last week to around 50bp, amidst the renewed fiscal concerns and following a further increase in year-end Selic rate expectations in today’s Focus survey.
    • Looking ahead, attention turns to tomorrow’s Copom minutes, followed by mid-month IPCA inflation data on Wednesday. The BCB is then due to publish its quarterly inflation report on Thursday.