- Analytics
- News and Tools
- Market News
- Brazilian Real and Mexican Peso will remain well supported – Commerzbank
Brazilian Real and Mexican Peso will remain well supported – Commerzbank
Esther Reichelt, FX Analyst at Commerzbank, explains why BRL and MXN are holding up well.
Not only doves cut interest rates
With inflation having come down significantly to 3.9% in Brazil and 5.8% in Mexico, rate cuts are justified to avoid excessive tightening through further increases in real interest rates. Hence, rate cuts are not a dovish signal as both central banks have so far left no doubt that they intend to maintain reasonably positive real interest rates for the time being, given the continuing uncertainties about the future path of inflation.
We expect both central banks to reaffirm their fundamentally hawkish stance in this week's rate decisions, and that the Brazilian Real and the Mexican Peso will remain well supported.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
