USDBRL Analysis: December 28, 2023

usdbrl analysis

FxNews – In today’s USDBRL analysis, the Brazilian real is trading around 4.86 per USD, close to its one-month high. This trend comes as the US dollar approaches a five-month low, with support for the greenback weakening. The Fed’s dovish outlook for 2024 plays a significant role in this scenario. Meanwhile, Brazil’s trade balance remains near record levels. This performance is primarily due to a nearly 30% increase in its trade surplus in November, a boost propelled by high prices for commodities like iron ore and sugar, as well as strong soybean harvests. These factors have led to a rise in foreign currency inflows.

USDBRL Analysis

USDBRL Analysis | 4H Chart

USDBRL Analysis: Brazilian Real’s Strong 2023 Performance

Despite the continuous reduction in the Selic rate since August, which now stands at 11.75%, the Brazilian real has experienced an impressive year-to-date increase of over 8%. This resilience in the Brazilian real, as highlighted in the USDBRL analysis, indicates a robust economic scenario in Brazil, contrasting with the dovish sentiments surrounding the US dollar for 2024.