Forex Investment and Currency Trading

Brazil: The monetary policy committee (COPOM) hiked the overnight Selic target rate by 50bp to 11.75%. The move was a surprise to most analysts, where 25bp represented expectations. In a brief statement, COPOM clearly demonstrated a desire to be highly preemptive in its approach to restraining inflationary pressures. The decision was designed to “immediately carry [...]

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Inflation in Brazil represents a growing challenge for Banco Central do Brasil (BCB), even though IPCA inflation is closer to its target relative to many Emerging economies where inflation is more dramatically exceeding targets. The market implication is for a 25bp hike in rates at the April 16 meeting and a move lower in USD/BRL [...]

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Brazil: The weekly central bank survey of market expectations showed a few minor changes in inflation expectations with virtually no shift in the view that inflation will likely remain at relatively elevated levels. Expectations for annual IPCA inflation in 12 months (4.29% from 4.25%) and end of 2008 (4.44% from 4.42%) both edged up slightly. IGP-DI [...]

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