The central bank of Brazil cut interest rates by 50bps to a record low level of 5.5% yesterday leading to a major sell-off in the real today. The decision was taken after the market close yesterday and while expected – it still results in a major pressure on the currency. The main rate was 14.5% as recently as in 2016! Weaker BRL means pressure on coffee prices – the commodity is down again on Thursday by around 1.5% and testing the key support of 98.50.
After Iran War: Markets and Prices
Market wrap: Cautious optimism in Europe, inflation higher but below expectations
Daily Summary: Trump, Inflation, Threats, and Persian Gulf Tensions Cast a Shadow Over Wall Street
Powell Signals Fed Patience, but Inflation Risks Are Rising!