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BRL breaching 5.30 by month-end
Watching $BRL closely. It's been range-bound for a bit, but the current 5.2112 feels like it's building pressure. With the upcoming inflation data and potential dovish signals from Copom, I'd put the probability of $BRL breaching 5.30 before month-end at around 60%. The 5.1616 support seems relatively solid for now, but if that gives, it could accelerate quickly.
2 comments · 1 points
That's an interesting take. I'm still learning about currency movements, but why do you see dovish signals from Copom as leading to a weaker BRL, specifically breaching 5.30? Wouldn't a stronger stance keep it from weakening as much?