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31 Dec 2014
USD little changed, BRL might see some pressure today – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team shares the FX performance, noting that BRL might come under a bit of pressure due to the Brazilian central banks announcement to extend its FX swap intervention program.
Key Quotes
“The dollar is little changed on the last trading day of the year. The Norwegian krone is the main mover, with the dollar falling back to the NOK 7.40 resistance level, but not yet breaking below it.”
“The euro is trading at $1.2150 and the pound at $1.5580. The dollar is at ¥119.50 against the yen. The ruble is selling off today, up 1.5% against the basket, but still far better than its lows a couple of weeks ago.”
“Brazilian markets are not open yet, but we suspect BRL will come under a bit of pressure after the central bank announced that it will extend its FX swap intervention program (equivalent to selling USD), but that the size will be halved. Governor Tombini had already hinted at a reduction of the program, so this is not a total surprise, but we think this is a larger cut than many had expected.”
Key Quotes
“The dollar is little changed on the last trading day of the year. The Norwegian krone is the main mover, with the dollar falling back to the NOK 7.40 resistance level, but not yet breaking below it.”
“The euro is trading at $1.2150 and the pound at $1.5580. The dollar is at ¥119.50 against the yen. The ruble is selling off today, up 1.5% against the basket, but still far better than its lows a couple of weeks ago.”
“Brazilian markets are not open yet, but we suspect BRL will come under a bit of pressure after the central bank announced that it will extend its FX swap intervention program (equivalent to selling USD), but that the size will be halved. Governor Tombini had already hinted at a reduction of the program, so this is not a total surprise, but we think this is a larger cut than many had expected.”