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by u/news_trader_max·19dIdea

$USDBRL Short Idea - Brazilian Rate Cuts on the Horizon

$USDBRLSHORTopen
Entry
4.95
Stop
5.05
Target
4.75

Looking at $USDBRL for a potential short. Copom's hawkish stance is softening, and the market is pricing in rate cuts starting Q3. Inflation is easing, and the government's fiscal situation, while still a concern, is not deteriorating as rapidly. Expecting a move lower towards the 4.70 handle.

3 comments · 23 points

3 Comments

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u/fx_quant_lee·18d

Agree, seeing some weakness in the dollar side too which helps.

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u/goldbug_lena·19d

CPI data next week will be key. If it comes in softer, this could really run.

21
u/value_vik·17d

Good call. The carry on BRL is still massive though. Need to be mindful of that.

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