May 12, 2022 12:20 GMT
- Market uncertainty keeps pushing the US Dollar higher, with DXY index breaking above the psychological 104 level in today’s trading session.
- Pressure on EM FX has remained elevated as CNY depreciation / geopolitical tensions continue to weigh on EM assets.
- Bull retracement on USDBRL continues on Thursday, with USDBRL breaking above its 100DMA at 5.1660.
- BRL is one of the weakest EM FX performers in Q2, down nearly 9% against the greenback.
- Next resistance to watch on the topside stands at 5.2290, which corresponds to the 50% retracement of the 4.5840 – 5.8740 range.