USD/BRL: Brazilian real tumbles to lowest since June

Matías Salord FXStreet

The Brazilian real and the Mexican peso are among the most affected currencies after the US election. In Brazil, the US dollar reached today the highest level since June and it gained more than 6% since Trump’s victory.

USD/BRL accelerated to the upside today. Initially broke 3.25 and then the strong resistance at 3.30. It jumped to 3.38 before it pulled back to 3.35, where currently trades, up 4.15% for the day. The pair is breaking key technical levels opening the doors to medium term gains. Two weeks ago it traded at 3.10, the lowest since July 2015.

Despite the losses of the last days, the Brazilian real continues to be among the top performers in the currency market so far 2016.

The central bank of Brazil announced a suspension of an auction of currency swaps contracts for today, probably because of the volatility in the currency market. The mechanism (reverse currency swaps) were used to limit the real’s appreciation.

Most emerging market currencies are under pressure today affected by the uncertainty that surrounds Trump’s policies. Many fear about an increase in protectionism and in interest rates that would hurt global trade and capital inflows.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

AUD/USD edges higher above 0.7050 as hot CPI lifts RBA rate hike odds

The AUD/USD pair gathers strength to near 0.7055 during the Asian trading hours on Thursday. The Australian Dollar edges higher against the US Dollar as hotter inflation data bolsters expectations of Reserve Bank of Australia rate hikes. The US September Personal Consumption Expenditures inflation report will be in the spotlight later on Thursday.

USD/JPY retakes 158.00 as USD stalls the post-FOMC corrective slide

USD/JPY attracts some dip-buyers during the Asian session on Thursday, climbing back above 158.00 as the US Dollar reverses part of the post-FOMC pullback from a two-week high. Bulls, however, await key US macro data – the Advance Q3 GDP and the PCE Price Index – before positioning for further gains. Focus will then shift to the crucial BoJ policy update on Friday amid firming expectations for a December rate hike.

Gold weakens below $4,050 amid renewed USD buying ahead of crucial US data

Gold slides back below $4,050 during the Asian session on Thursday, snapping a three-day winning streak. The US Dollar regains positive traction after Wednesday’s post-FOMC corrective slide as elevated energy prices keep December rate-hike bets firmly on the table. Moreover, geopolitical risks underpin the safe-haven buck, weighing on bullion as traders now look to crucial US data – the Advance Q3 GDP and the PCE Price Index.

XRP and XLM lose ground as hawkish Fed tone weighs

Ripple (XRP) and Stellar (XLM) remain under pressure on Thursday as bearish derivatives positioning and on-chain signals weigh on sentiment. XRP slides toward key support at $1.30, while XLM gives back some of its recent gains. Meanwhile, the Federal Reserve (Fed) held interest rates unchanged at 3.75%-4.00% at its two-day October policy meeting.

Fed's recap: A cautious hold with a clear warning on inflation

The Federal Reserve (Fed) held its policy rate steady at 3.75%-4.00%, but it wasn’t a unanimous decision. Among two officials who wanted a 25-basis-point hike were Lisa Cook and Beth Hammack, while Chair Kevin Warsh said the Fed would use the coming flow of information to decide whether further action is needed. The statement presented a resilient economy.

Anthropic pledged $270 billion to Amazon, Google, and Microsoft. Here's who actually gets paid

Anthropic owes Amazon, Google, and Microsoft at least $269.4 billion for computing power, even if it uses less. All three sell its models and handle its billing, and Amazon and Google own stakes and lend it money, so they get paid regardless of how the IPO goes. The Dario Amodei-led Anthropic filed its initial public offering (IPO) on Monday, seeking a listing on the Nasdaq under the ticker ANT.