Free Trial

USDBRL Rises Back Above Significant 5.00 Mark

BRAZIL
  • The modest rebound for the greenback in early US trade on Monday is weighing on the Brazilian real, prompting USDBRL to rise to its highest level since February 05, and notably back above the 5.00 pivot. This has marked an important medium-term pivot for the pair, of which we have not seen a close above since late October last year.
  • Slightly weaker-than-expected annual economic activity this morning may be providing a moderate additional headwind for the real, although this is unlikely to alter the BCB’s expected 50bp cut this Wednesday.
  • Technical conditions for USDBRL have remained bullish, and a clear break of the 5.00 hurdle would initially open 5.0609, 61.8% of the Oct 6 - Dec 27 bear leg.

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.