Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Brazilian Real Eyes Inflation Data, Bolsonaro Speaks at Davos

Brazilian Real Eyes Inflation Data, Bolsonaro Speaks at Davos

Dimitri Zabelin, Analyst

TALKING POINTS – Brazilian Real, Bolsonaro, World Economic Forum

  • The Brazilian Real may rise on upcoming inflation data
  • Bolsonaro delivers speech in Davos – investors rejoice
  • BRL may outperform other emerging market currencies

See our free guide to learn how to use economic news in your trading strategy !

The Brazilian Real may rise tomorrow as the central bank prepares to release the month-on-month IGBE Inflation IPCA-15 report. The forecast is pegged at 0.35 percent with a dismally low previous report at -0.16 percent. Economic data coming out of Brazil for the third quarter generally underperformed relative to forecasts. However, reports since January have been broadly exceeding expectations.

If the data comes in better than expected, it is possible USD/BRL may inch downward towards 3.7625, reversing the almost-week-long uptrend. Earlier this month, the pair looked like it was on the edge of what appears to be a bearish reversal pattern. USD/BRL appears to be encountering resistance now at 3.8140, with another potential roadblock at 3.8504.

USD/BRL – Daily Chart

Chart Showing USD/BRL on a Daily Chart

At the World Economic Forum (WEF) in Davos, Switzerland, Brazilian President Jair Bolsonaro delivered the key note address and spoke about his administration’s “major commitment” to opening Brazil for trade. Other elements of his economic agenda include proposals for simplifying the tax system, reducing the size of government and – most importantly – reforming the country’s bloated pension system.

The latter proposal has been a major reason why investors have begun to eye Brazil favorably. It is reported Bolsonaro will settle on a pension system framework by the time he returns from Davos and will present his overall economic agenda to the National Congress by the end of the month. The optimism over Bolsonaro’s reforms has led the Ibovespa equity index to reach its highest point in its existence, closing at 96096.75.

Ibovespa Equity Index – Weekly Chart

Chart Showing Ibovespa on a Daily Chart

Looking ahead, if Bolsonaro can pass his reforms through Congress, the Brazilian Real could be the best performing emerging market currency in 2019.


--- Written by Dimitri Zabelin, Jr Currency Analyst for

To contact Dimitri, use the comments section below or @ZabelinDimitri on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.