BRL may open stronger Thursday, as the delivered an expected 50bp rate cut, but notably removed the following
sentences from the statement.
“In the Copom evaluation, the evolution of the basic scenario and the balance of risks
prescribes an adjustment in the degree of monetary stimulus, with a reduction of the Selic
rate by 0.50 percentage points. The Committee considers that the consolidation of the benign scenario for prospective should allow an additional adjustment of equal
It also took out the phrase "in any further adjustments in the degree of stimulus" from the
following line in the October statement: “The Copom understands that the current stage of
the recommends caution in any further adjustments in the degree of
- S&P followed the rate decision by upgrading Brazil’s outlook from stable to positive.
Looking at the technicals the EUR/ BRL is currently at the Monthly and is making lower highs and lower lows - finding resistance above.
There is a lot of possible liquidity below the Yearly as this acted as strong support from the summer.