MNI BRIEF: Canada Commits To Just One Of Three Fiscal Anchors

MNI BRIEF: German Insolvency Rate Slows, 2025 Pickup Expected

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

MNI China Daily Summary: Tuesday, December 10

MNI: USDA: 2024/2025 CORN PRODUCTION EST 15.14B BSL

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

EZ/UK Bond Supply Calendar: 4.25% Jul-34 Gilt Due Wednesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

DI Swap Rates Thrive Following Lower Inflation Print, BRL Under Pressure

BRAZIL
  • Today’s lower-than-expected IPCA-15 inflation print set the tone for Brazilian asset price moves on Thursday, as renewed calls for rate cuts gain traction. Di contracts expiring between Jan25 & 26 have fallen around 17bps, in stark contrast to the moves for core yields.
  • The data indicated that inflation has now shown 12 straight months of declines, potentially bolstering the administration’s calls for a reduction in the nation’s Selic rate.
  • Indeed, there has been renewed pressure on the currency, with USDBRL rising 1.20% as of writing, reversing the entirety of the post fiscal framework approval optimism. USDBRL now trades at the best levels since May 09, significantly narrowing the gap with firm resistance at 5.0330, the 50-day EMA. A break of this average would alter the current technically bearish picture.
  • However, it remains to be seen if the most recent data will sway the hawkish stance of the Copom. BCB Governor Campos Neto remains worried about readings of core inflation, which exclude items like gasoline and food, as well as elevated forecasts showing price increases picking up again later this year. The disinflationary process requires “patience and serenity,” Campos Neto said in an interview recorded on May 4 that was released Thursday morning.
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

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.