USD/BRL: Carry trade demand should dominate and drive the pair down to the 4.80 area

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USD/BRL: Carry trade demand should dominate and drive the pair down to the 4.80 area
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After the FOMC decision later today, Brazil’s central bank (Banco Central do Brasil) is widely expected to deliver another 50 bps rate cut. Economists

BCB to deliver another 50 bps rate cut

Yet strong growth in Brazil, solid demand for the carry trade and highly positive real rates provide a good underpinning for the currency. If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

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