HALISTER1: BRL Rally May Open Room for BCB to Cut Swap Holdings: Icap

BRL Rally May Open Room for BCB to Cut Swap Holdings: Icap

(Bloomberg) -- BRL gains in 2017 reflect inflows, including seasonal transactions, companies offering bonds overseas and M&A, Italo Abucater, FX trading head at Icap Brasil, says in a phone interview.
  • Continuing inflows may lead BRL to 3.10/USD, opening room for BCB to resume FX reverse swaps auctions or to skip rolling over the swaps expiring during this month
  • While absence of local negative political news during recess in Brazil’s Congress and Justice also bolsters BRL, the scheduled inauguration of Donald Trump in U.S. is a risk for FX volatility
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Italo Abucater (ICAP PLC)

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Holding Decreases

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