HALISTER1: BCB May Suspend Auctions If Flows Reverse, Ativa Says

BCB May Suspend Auctions If Flows Reverse, Ativa Says

(Bloomberg) -- BCB is likely to define its steps in FX market depending on how flows develop, Paulo Henrique Gouveia, a trader at the brokerage Ativa, says in a phone interview.
  • Inflows led BRL to outperform peers last week; should inflows cease, BCB may stop interventions
  • NOTE: BCB FX reverse swaps auctions helped to weaken the currency from last Friday
    • After decoupling from broad EMFX last week, BRL moves have since been more linked to the external mood, Gouveia says
    • Volatility may ease with BRL new level in the 3.25-3.30/USD range
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Paulo Henrique Gouveia (Ativa SA CTCV)

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