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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: France 40: 0.61% FTSE 100: 0.37% Germany 30: 0.37% Wall Street: 0.11% US 500: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/B2O626AOd4
  • Is the Japanese Yen Hitting a Turning Point? - #USDJPY chart on @TradingView https://t.co/wF2NGNapKc
  • Heads Up:🇹🇭 Balance of Trade (SEP) due at 03:30 GMT (15min) Expected: $-0.8B Previous: $-1.22B https://www.dailyfx.com/economic-calendar#2021-10-22
  • Stock markets may be vulnerable to political volatility as China flexes its military might against Taiwan ahead of the Biden-Xi summit. Will reconciliation yield to rockets? Find out from @ZabelinDimitri here:https://t.co/YscFLDpan6 https://t.co/CoJhC9vHpB
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: 0.20% Silver: 0.19% Oil - US Crude: -0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/HrKCRbsUJP
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.20% 🇳🇿NZD: 0.19% 🇨🇦CAD: 0.15% 🇨🇭CHF: 0.03% 🇬🇧GBP: 0.01% 🇯🇵JPY: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/b3hu5OEDFQ
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 90.58%, while traders in USD/JPY are at opposite extremes with 77.23%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Ghq29hRjlq
  • RT @josh_wingrove: Biden went to Baltimore and gave the biggest update yet on the Congressional talks, said the corporate tax rate won’t ri…
  • Gold prices are under pressure after China growth slowed and New Zealand inflation surged, with investors pricing in more aggressive central bank policy outlooks, which is supporting bond yields.Get your market update from @FxWestwater here:https://t.co/9Jiy8IKqQv https://t.co/7ncLoSYQre
  • Australian Dollar gaining during morning Asia trade after reports crossed the wires that #Evergrande made a bond interest payment Sentiment is cautiously improving, #SP500 futures are pushing higher $AUDUSD #SP500 #AUD https://t.co/vWmn6HJfcd https://t.co/FeEc5HTa31
USD/BRL May Continue to Gyrate as Brazilian Central Bank Tightens by 100 Basis Points

USD/BRL May Continue to Gyrate as Brazilian Central Bank Tightens by 100 Basis Points

Brendan Fagan,

Brazilian Central Bank, Brazilian Real, US Dollar, USD/BRL – Talking Points

  • Central Bank of Brazil hikes rates by 100 basis points, Selic rate now 6.25%
  • Brazil continues to battle significant inflation, annual CPI approaching 10%
  • USD/BRL may look to 50-day moving average for support after rate hike
Advertisement

The Central Bank of Brazil raised the benchmark Selic rate by 100 basis points (bps) on Wednesday in an effort to curb rampant inflation. The 100 bps hike was in line with estimates and follows a 100 bps hike at the central bank’s previous meeting. Analysts had been forecasting noticeable hikes to the benchmark rate, with some going as far as predicting a hike of 150 basis points. Central bank officials also revealed they are forecasting an additional 100 bps hike at the next policy meeting in October.

USD/BRL May Continue to Gyrate as Brazilian Central Bank Tightens by 100 Basis Points

Courtesy of the DailyFX Economic Calendar

Brazil has notably struggled with inflation over the last 12 months, forcing the nation’s central bank into a more hawkish policy stance. Unwelcomed rises in consumer prices has forced the Central Bank of Brazil to hike considerably at its last two policy meetings. Severe drought has accelerated upward pressure on energy prices, exacerbating the sting being felt by consumers. The Brazilian central bank’s inflation target remains just below 4%, but annual CPI continues to push higher toward 10%.

USD/BRL Daily Chart

USD/BRL May Continue to Gyrate as Brazilian Central Bank Tightens by 100 Basis Points

Chart created with TradingView

USD/BRL could continue to gyrate following Wednesday’s FOMC meeting, in which Federal Reserve Chair Jerome Powell indicated that a taper of asset purchases is “imminent.” With the Fed moving toward tightening and the BCB well and truly there, USD/BRL may be subject to additional volatility in the coming weeks. Dollar strength in September has seen USD/BRL push back toward 5.30, but continued hawkish policy from the Central Bank of Brazil could see the cross retest the 50-day moving average or trendline support below.

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

--- Written by Brendan Fagan, Intern

To contact Brendan, use the comments section below or @BrendanFaganFX on Twitter

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

DISCLOSURES