BRAZIL: USDBRL Spikes 1.5% Amid Fiscal Concerns, Pierces 50-day EMA Resistance
Oct-10 14:05
- USDBRL has extended gains today, with the pair up more than 1.5% to one-month highs, taking total gains this week to around 2%. While BRL is one of the EM positions, the move comes amid renewed focus on fiscal pressures following the lower house’s rejection of the government’s key tax plan earlier this week.
- To recap, the rejected provisional measure aimed to offer alternatives to raising the Financial Transactions Tax, meaning that the government now has to find other revenue sources to meet the 2026 fiscal target.
- In addition, President Lula is unveiling a housing plan today to boost the housing market with cheap credit ahead of next year’s elections. Bloomberg reports that the project aims to provide BRL 20bn to expand cheaper housing loans, although that amount could grow in the coming years.
- Today’s spike in USDBRL has pierced key resistance at the 50-day EMA, at 5.3974. For now, USDBRL gains are considered corrective, and a bearish trend remains intact. However, a clear break of the 50-EMA would signal scope for a stronger short-term recovery and open 5.5012, the Sep 2 high.
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US: Senate Banking Committee Vote On Miran Fed Nomination Underway Shortly
Sep-10 14:01
The Senate Banking Committee is shortly due to gavel in for executive session to vote on the nomination of Council of Economic Advisors Chair Stephen Miran to serve on the Federal Reserve’s Board of Governors. LIVESTREAM
- As there has been little Republican opposition, the Committee is expected to vote in favour of Miran’s nomination, teeing up a full Senate vote next week. Miran is expected to be confirmed to the Fed board in time for the September 16-17 FOMC meeting.
- One potential Republican 'no' vote on the panel, Senator Thom Tillis (R-SC), said on Monday he would vote in favour of Miran's nomination despite concerns over Miran retaining his job in the Trump administration, as he would only serve a short time on the board.
- “With his intent to potentially go back to the [CEA], I don’t think he’d be appropriate for a long-term role, but I’ll support him for the short term,” Tillis said.
MNI:US JUL WHOLESALE INV 0.1%; SALES 1.4%
Sep-10 14:00
- MNI:US JUL WHOLESALE INV 0.1%; SALES 1.4%
MNI: US JUL WHOLESALE INVENTORIES 0.1%
Sep-10 14:00
- MNI: US JUL WHOLESALE INVENTORIES 0.1%
