August 13, 2024 17:29 GMT
LATAM FX: Firmer Equities Lending Support to BRL, June Retail Sales Due Tomorrow
LATAM FX
- The strong topside momentum for global equity benchmarks on Tuesday is not having a huge effect on LatAm currencies, with the bulk of the greenback weakness better reflected in strong gains for AUD, NZD and GBP in G10.
- However, USDBRL price action has tilted bearish, receding 0.60% on the session and the pair looks set to potentially close below a notable level of support, the 50-day EMA. The level intersected today at 5.4925 and a clear break would undermine the recent bullish theme, signalling potential for a deeper retracement towards 5.3709, the Jul 11 low.
- The governor of Brazil's central bank, Roberto Campos Neto, said Tuesday that inflation expectations above the 3% target are a point of concern for the monetary policy committee and recent hawkishness may have underpinned the Real’s recovery. US inflation data is the focus tomorrow, however, Brazil retail sales for June will cross thirty minutes before.
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