Halister News

(Bloomberg) -- Absence of news, partially due to a temporary recess in Congress and Top Court, brings political relief, is enough to bolster BRL in near term amid a scenario of wide gap between local and external rates, Olavo Souza, FI trader at Mirae Corretora says in a phone interview.

• BRL fluctuating with no solid trend this Monday vs USD reflects low liquidity with holidays in global major financial centers such as New York, London
• Relief brought by absence of news is likely to end in early 2017, with Brazil political life returning and U.S. President-elect Trump preparing for his inauguration
  • Such risks may prevent BCB from speeding up further the pace of rate cuts to 75bps in January and February; rather, it’s more likely to cut Selic by 50bps