BRAZIL: BRL Extends Gains Following Significant Technical Break
Jan-23 18:02
- The Brazilian real is the best performing currency in LatAm again on Thursday, extending its impressive advance over the past two sessions. As a reminder, we highlighted some comments from officials as providing a tailwind for the Real, however, it was a technical break of the psychological 6.00 handle and the 50-day EMA which really boosted downside momentum for USDBRL.
- In today’s session, the pair is down a further 1%, having printed a low of 5.8739 in recent trade. The substantial moves for major equity indices this week have also provided a solid backdrop for the EM FX basket.
- Alongside the punchy BCB interventions in December, and a commitment to further 100bp rate hikes in coming meetings, the Brazilian real has had a much more positive start to 2025. Despite this, the recent appreciation is temporary and will not be enough to curb inflation unless the government implements fiscal measures to improve the public debt outlook, former economic advisor to the Ministry of Planning and Budget Eduardo Velho told MNI.
- USDBRL price action has narrowed the gap to 5.8675, the Dec 12 low and a cluster of prior resistance turned support. Further renewed optimism and BRL gains might target a deeper retracement to 5.6340, the Nov 07 low.
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US STOCKS: Late Equities Roundup: Santa Rally Support
Dec-24 17:26
- Stocks continued to pull higher Tuesday, brief program selling tempered price action before climbing higher again before the early close ahead of the midweek Christmas holiday, Consumer Discretionary and Information Technology sectors outperforming.
- Currently, the DJIA trades up 299.2 points (0.7%) at 43206.37, S&P E-Minis up 50.75 points (0.84%) at 6086.75, Nasdaq up 206.8 points (1%) at 19971.56.
- Autos and broadline retailers buoyed the Consumer Discretionary sector in the first half: Tesla +5.12%, General Motors +1.71%, Amazon +1.5%, AutoZone +1.29%. Semiconductor stocks continued to support the IT sector for the second day running: Super Micro Computer +5.49%, Broadcom +2.87%, Palantir Technology +1.74%, ON Semiconductor +1.25%.
- On the flipside, Health Care and Utility sectors underperformed ahead the early close, pharmaceutical shares weighing on the former: Viatris -0.80%, Regeneron Pharmaceuticals -0.58%, Biogen -0.56% and Bristol-Myers Squibb -0.46%. Gas and Electricity providers weighed on the Utility sector: American Water Works -0.70%, AES Corp -0.57%, Consolidated Edison -0.41%.
FED: US TSY TO SELL $75.000 BLN 4W BILL DEC 26, SETTLE DEC 31
Dec-24 17:05
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FED: US TSY TO SELL $70.000 BLN 8W BILL DEC 26, SETTLE DEC 31
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- US TSY TO SELL $70.000 BLN 8W BILL DEC 26, SETTLE DEC 31
