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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.
EM FX
- The trend in BRLMXN has reversed since the middle of April as uncertainty eases in Brazil and sentiment has started to rise again in the past two months.
- Brazil GDP growth surprised positively this week with GDP growth rising by 1.2% QoQ in Q1 (vs. 0.9% exp.).
- Analysts have reviewed Brazil economic outlook to the upside in recent weeks, with sell side firms expecting 2021 Brazil GDP growth to rise by up to 5.5%.
- In the year following the Covid19 shock, while the liquidity injection from central banks strongly supported the MXN (also called EM carry currency), the BRL has remained weak amid elevated political and economic uncertainty (until recently).
- BRLMXN has appreciated by over 13% since the middle of April, breaking above its 200D SMA at 3.78 last week and currently trading slightly below 4; next resistance to watch on the topside stands at 4.07, which corresponds to the 38.2% Fibo retracement of the 3.51 – 4.98.
Source: Bloomberg/MNI
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.
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