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USDCAD TECHS

Bear Leg Extends

AUDUSD TECHS

Northbound

ARGENTINA

August Economic Activity Rises 1.1% M/m

EURJPY TECHS

Uptrend Remains Intact

BRAZIL
  • As expected, Brazil IPCA-15 inflation continues to increase, rising to 7.27% YoY in May (vs. 7.38% exp.) and up from 6.17% the previous month.
  • We have seen that inflationary pressures have intensified in the EM market, with CPI inflation diverging significant from the CBB upper tolerance band of 4.75%.
  • Hence, CBB has started a tightening cycle to reduce inflation risks and has already raised the Selic rate by 150bps since the start of the year to 3.5%.
  • Economist expect the Selic rate to stand at 5.5% at the end of this year.

Source: Bloomberg/MNI

MNI London Bureau | +44 203-865-3850 | yvan.berthoux@marketnews.com
MNI London Bureau | +44 203-865-3850 | yvan.berthoux@marketnews.com