The Brazilian real gets a chance to recover
FX_IDC:EURBRL Euro / Brazilian Real
The Brazilian real gets a chance to recover thanks to the recently reported recession in German, the bloc’s biggest economy. The single currency steadies this Tuesday but is widely expected to contract in the coming sessions as investors worry about possible measures from the eurozone to save its powerhouse. Yesterday, the German statistics office reported that the country’s economy dropped from -0.1% to just -2.2% in the first quarter of the year thanks to the lockdown measures that closed businesses. The euro will continue to struggle as Berlin is also expected to see a deeper economic slump in the second quarter of the year. The news gives a much-needed opening for the Brazilian real who has also been struggling against most major currencies in the market, Bearish investors of the euro to Brazilian real exchange rate are hoping to force the 50-day moving average to make a downward reversal in efforts of minimizing prior losses.