Free Trial

USDBRL Below Psychological 5.00 Mark, Eyes 2023 Lows at 4.94

BRL
  • The Brazilian real is extending on early strength following the below-estimate inflation data earlier today. USDBRL has broken below a key psychological support at 5.00 in recent trade, the lowest level since February 02. Similar optimism is being seen across the DI swaps curve, with swap rates seen between 10-17bps lower throughout the curve.
  • Overall, USDBRL conditions remain bearish, and the recent move lower resulted in a break of 5.1012, the Mar 8 low and a key support.
  • The break strengthens the current bearish theme and signals scope for a move towards 4.9410, the Feb 2 low. Initial firm resistance is seen at 5.1725, the 50-day EMA.

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.