USD/BRL: The lows are in the 4.90-5.00 range – Commerzbank

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USD/BRL: The lows are in the 4.90-5.00 range – Commerzbank
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USD/BRL: The lows are in the 4.90-5.00 range – Commerzbank USDBRL Brazil Inflation Banks

Economists at Commerzbank discuss BCB’s policy outlook and its implications for the USD/BRL pair after yesterday’s inflation figures.“Yesterday's weaker-than-expected inflation data for mid-May boosted expectations of a rate cut in Brazil and weakened the real. We also see room for a rate cut.”

“We expect the BCB to initiate the rate cut cycle cautiously in order to avoid speculation about government influence. Accordingly, the Real depreciated yesterday, but is still trading at high levels against theFeed news If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

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