MNI: PBOC Conducts CNY2 Bln Via OMO Thurs; Liquidity Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS THURS

MNI: PBOC Sets Yuan Parity Lower At 7.1339 Thurs; -1.06% Y/Y

CHINA SETS YUAN CENTRAL PARITY AT 7.1339 THURS VS 7.1342

MNI BRIEF: Bank of Korea Keeps Policy Rate At 3.50%

MNI: BANK OF KOREA KEEPS POLICY RATE AT 3.50%: PRESS

Japan May Machine Orders -3.2% M/M

MNI JAPAN MAY CORE MACHINE ORDERS -3.2% M/M; APRIL -2.9%

EZ/UK T-Bill Calendar: 1/3/6-Month UKTB Auction on Friday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

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

Outperforms Regional Peers, Morgan Stanley Maintain Constructive View

BRAZIL
  • The Brazilian real is continuing to hold onto its gains against the dollar through today’s session, with USDBRL approximately 0.65% weaker on the day and at its lowest since Feb 2. Against this backdrop, Morgan Stanley maintain their constructive view on BRL relative to its regional peers, noting that the fundamentals for the currency remain in good shape.
  • In particular, they highlight that carry is still attractive, that positioning looks clean and that trade flows are off to a very strong start this year. The main risk to their view is a potential pick-up in fiscal noise, as congress returns from recess.
  • Nonetheless, they still expect the path of least resistance for USDBRL to be higher, or at best flat at current levels, given their view that USD risks are primarily skewed to the upside. They prefer to be long BRL against regional FX such as CLP (limit order, entry: 192.50), rather than against USD, and emphasise the importance of being selective with entry levels.
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.