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May 6, 2024 1:02 PM UTC
The Brazilian Central Bank (BCB) convenes on May 8 to set the policy rate. Previous forward guidance hinted at a 50bps cut in May, but recent statements from BCB President Roberto and some weakness in the BRL have shifted expectations to a 25bps cut. However, we anticipate the BCB maintaining a 50bp
May 6, 2024 12:00 AM UTC
EMERGING ASIA
EM currencies perform mostly stronger against the USD as the greenback slipped on weaker than expected payroll data. KRW saw the largest gains of 0.94%, followed by IDR 0.63%, THB 0.43%, SGD 0.39%, TWD 0.36%, MYR 0.34%, PHP 0.31%, CNH 0.19%, INR 0.04% and HKD 0.02%.
USD/CNH is trading lo
May 3, 2024 2:24 PM UTC
April’s ISM services index of 49.4 from 51.4 has fallen below neutral for the first time since December 2022. That dip was explained by bad weather. There is no obvious erratic factor here to explain the weakness, but the details suggests that weakness may be overstated.
May 3, 2024 10:45 AM UTC
While U.S. economic developments, plus Fed policy prospects, will be important in terms of EM currency developments, domestic politics and fundamentals will also be decisive. These can keep the South Africa Rand volatile in the remainder of 2024, given the risk of a coalition government and African