Can Brazil’s Real (USD/BRL) Break the Dollar’s Grip?Macroeconomics, Carry Trade, and Inflation Dynamics
USD/BRL trades between 5.06 and 5.22 amid shifting global interest rate differentials. The real recently strengthened to around 5.10, a three-week high. Brazil’s central bank cut the Selic to 14.00 percent in August, a fourth consecutive quarter-point reduction. Copom offered no forward guidance, leaving September genuinely open. IPCA inflation eased from May’s 4.72 percent peak yet remains above the 3 percent target. Energy and fuel prices st
Brazilianreal
USD/BRL: Is the Real’s High Yield a Trap?The Brazilian Real (BRL) stands at a paradox in late 2025. Local innovation thrives, yet the currency weakens against the US Dollar (USD). UBS analysts forecast the USD/BRL exchange rate will hit 5.50 by mid-2026. This analysis explores the hidden friction points driving this forecast.
Macroeconomics: The Deficit Reality
Brazil’s fiscal health remains the primary drag on the currency. The Central Bank is expected to hold rates at 15% through 2025. This creates a lucrative "carry trade" for fo
Trump’s 50% tariff sparks USD/BRL breakout The Brazilian real weakened sharply against the U.S. dollar after US President Trump announced 50% tariffs on Brazilian exports, effective 1 August.
In response, Brazilian President Luiz Inacio Lula da Silva announced Brazil would retaliate with the same rate on U.S. imports. Trump has already pledged to retaliate if Brazil retaliates.
USD/BRL rallied from just under 5.44 to a high near 5.63. On the 1-hour chart, the pair is now retracing but perhaps consolidating in a narrow range between t
Can the Brazilian Real Survive its Perfect Economic Storm?In the intricate world of global finance, few narratives are as compelling as Brazil's current economic crucible. The Brazilian real stands at a precipice, buffeted by a confluence of domestic policy missteps and international economic pressures that challenge the very foundations of its monetary stability. President Lula's administration finds itself wrestling with a complex challenge: balancing ambitious social spending with the cold, hard realities of fiscal discipline.
The currency's dramat
USD BRL chart Analysis EN and PT language
On a weekly time frame, the Brazilian Real has experienced a downward trend since 2011. There are several reasons that have contributed to the market's inflation and the weakening of the Brazilian economy against the US Dollar. These reasons include factors such as job vacancies, high crime rates, corruption, and a complex tax system.
The chart analysis indicates that the waves from 2011 to 2023 can be identified as five distinct waves, with wave 5 ending at 6 Brazilian Reals for 1 US Dollar.
Emerging market currencies to outperform G10 in 2023With the global economy showing more resilience and the Fed slowing its pace of tightening, we believe EM currencies can outperform relative to G10 peer currencies this year. Attractive real yields should result in market participants accumulating exposure to developing currencies, while our assumption for contained banking sector stresses should lead to improved risk appetite
The economics of the FIFA World CupIn a few months from now, billions of people will be glued to their TVs for the 2022 FIFA World Cup that is set to take place in Qatar. Every four years, soccer’s global governing body gathers teams from over 30 countries for the world’s biggest sporting event that brings in billions of dollars in revenues and other economic benefits (jobs and tourism) for host nations and for FIFA itself.
Economic benefits for host countries
For every World Cup, countries put in their bids to host the event
The Economist - Brazil Edition - Market TOPS and BOTTOMSThe Economist - Brazil takes off
(Nov 14th 2009 edition)
The Economist - The betrayal of Brazil
(Apr 23rd 2016 edition)
The Economist - Brazil’s dismal decade
(Jun 5th 2021 edition)
If this isn't an indication to get long Brazilian equities, I don't know what is.
Never confuse education with intelligence. You can have a Ph.D. and still be an idiot!
Buy $PAGS - NRPicks 05 NovPagSeguro Digital Ltd., together with its subsidiaries, offers financial technology solutions and services for consumers, sole proprietors, micro-merchants and small and medium-sized companies in Brazil and internationally.
Revenue TTM 1.6B
Net Income TTM 237M
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Net Margin TTM 14.4%
EBITDA Margin TTM 27.5%
Debt/EBITDA TTM 0.02x
ridethepig | BRL for the Yearly Close📌 BRL for the Yearly Close
This diagram illustrates the LT map for those in BRL and tracking Brazil for good opportunities into 2021. According to my INR maps, again a very similar cycle count which is decisive for profit taking:
The BRL now has the attacking position at the highs after completing a multi decade 5 wave cycle from 1.50 towards 6.00. But here is the weakness, we are already seeing profit taking as the USD enters into a structural decline, we have yet to mention the advant
FX Minors: Current Market Trends & Covid-19 / U.S. ElectionsIn this analysis, we take on the Swiss Franc (CHF) versus the Brazilian Real (BRL) to gauge the prevailing sentiment in the FX markets, in the context of U.S. Presidential Elections uncertainties around the U.S. Dollar (USD), as well as the diminishing in importance of Covid-19 globally & a generalised overextension of major currencies to the upside against FX minors (such as the BRL, HUF, PLN, HRK & so on).
A short sell-off in this CHF/BRL pair is particularly significant due to the 'safe-have
BRAZILIAN REAL STRUCTURE ANALYSIS|
BRAZILIAN REAL IS APPROACHING A SUPPORT LEVEL, GOOD RISK REWARD LONG|
1- Decent long opportunity at both support 1 and support 2
2- The pair moves nicely, unlike, say, JPY pairs
3-Clear SL levels
4- Great Risk/Reward at both supports
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US Dollar overcomes first projected resistanceThe US Dollar has reached and overcome the first projected resistence around R$5.30.
It seems like its going to keep rising till the region of R$6.00, where it is going to retract to R$5.30 tops.
On the other hand if this recent overcoming fails, the US Dollar may retreat back to the next support around R$4.80.
What do you think?
Does it make sense for you?























