BRL trading well at the open,........>

BRAZILIAN REAL: BRL trading well at the open, prompting USD/BRL to gap lower and

extend the pullback from last week's highs to 1.8%. The moves follow yesterday's

after-hours rate decision from the Brazilian central bank, who signalled that

this most recent rate cut is the last of this easing cycle.

- The BCB board see the lag of policy as justification for this being the final

rate cut of the cycle, despite their projections for inflation still falling

short of the 4% target.

- Citi note that the BCB board did acknowledge higher uncertainty regarding the

global economic outlook, but retained the assumption of a "relatively favourable

EM environment". This may suggest that if EMs deteriorate, the BCB may have to

re-evaluate their stance.

- Those looking for further downside in USD/BRL eye the late Jan lows at 4.1568

initially ahead of the 50-dma at 4.1453.