Sacha Tihanyi, Deputy Head of Emerging Markets Strategy at TDS, suggests that while the change in the external environment and hedging pressures have made matters worse for Brazil, they do not attribute the rise in US yields or the USD as the main macro driver behind higher Brazilian yields or BRL weakness. Key Quotes “We observe the slowing growth recovery and negative growth shock implied by the trucker’s strike to be generating a re-expansion in Brazil’s fiscal risk premium, constituting the key fundamental drag on Brazilian risk assets.” “We see the BCB on hold for now and do not expect a response to FX weakness with interest rate policy at current levels in USDBRL, though a hawkish tone shift is likely.” “We view the market’s aggressive pricing of rate hikes this year as unlikely to be realized, as it places too much weight on inflation risk and not enough on the output gap.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next US: Existing home sales to increase 1.5% in May – Nomura FX Street 3 years Sacha Tihanyi, Deputy Head of Emerging Markets Strategy at TDS, suggests that while the change in the external environment and hedging pressures have made matters worse for Brazil, they do not attribute the rise in US yields or the USD as the main macro driver behind higher Brazilian yields or BRL weakness. Key Quotes "We observe the slowing growth recovery and negative growth shock implied by the trucker's strike to be generating a re-expansion in Brazil's fiscal risk premium, constituting the key fundamental drag on Brazilian risk assets." "We see the BCB on hold for now and do not expect… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
