Free Trial

USDBRL Breaches Initial Support, Copom Next Week

BRAZIL
  • Initial support at 4.9883 for USDBRL, the Sep 29 low, has been breached following Friday’s open, setting up a potentially bearish technical development for the pair. A clear break would expose 4.9410, trendline support drawn from the Jul 28 low. The trendline also represents an important area of support.
  • Favourable inflation data this week and falling expectations should affirm the Copom’s case to continue with its 50bp easing pace next week. The recent tightening of financial conditions should keep the bar high for an acceleration in the BCB’s current pace, although constant rhetoric from the administration on the need for lower rates will keep attention on any updates to the committee’s guidance.
  • In local news on Thursday, Vale SA said it will reward investors with payouts and a new share buyback program as the Brazilian iron ore and nickel giant vies to appease shareholders concerned by softening Chinese demand.

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.