USD/BRL Range Holds as US CPI and Fed Risks Loom
The USD/BRL currency pair has been experiencing a tight value stance, and financial institutions are cautious ahead of major risk events. The Brazilian Real has correlated with global Forex markets, but the USD/BRL is still within its known range after yesterday's close.
Yesterday, the USD/BRL closed around 5.1045, and on Tuesday it was near 5.1275 before sliding lower to nearly 5.0700. Despite buying momentum becoming stronger Wednesday, the USD/BRL held onto its realm below recent highs.
The currency pair has moved higher since touching a low of nearly 4.8850 in May but turned in lower results since August. Financial institutions are bracing for tomorrow's U.S inflation data and next Wednesday's Federal Reserve FOMC interest rate decision, which may bring volatility to the USD/BRL.