(MENAFN- Daily Forex) advertisement Don’t take the risk – start trading the currency markets today Yesterday, USD/BRL closed near the 4.9870 ratio, entering today’s trading session with a cautious atmosphere surrounding the Forex pair. USD/BRL has managed to maintain a fairly consolidated price range, but the currency pair is also starting to show signs of a break, perhaps as nervous behavioral sentiment casts a shadow over the broader forex market. .become a factor The price range for USD/BRL over the past month was mostly between the 4.9250 and 5.0375 values, with some temporary outliers.
However, yesterday’s high touched the higher territory of USD/BRL’s one-month price range, raising questions as to why. USD/BRL has turned from high to low, but financial institutions may still be a little worried about the possibility that the US Federal Reserve will raise the federal funds rate in June. The Fed basically said last week that it would consider pausing a major borrowing rate hike, but is open to the idea of raising the federal funds rate if inflation remains stubborn. And this is where speculators may find potential volatility lurking in USD/BRL in the short term. Today the US releases key consumer price index data. A higher-than-expected inflation report could trigger a series of nervous sentiment reactions in the broader market, impacting USD/BRL. The 5.0000 mark may seem like a significant psychological level, but in reality it has been challenged many times over the past month. It may be the focus, but the key numbers may be the 4.9250 and 5.0375 price levels. If USD/BRL’s relatively consolidated price range suddenly penetrates, this could cause volatile results.US Inflation Statistics Impact His USD/BRL Today
A lower-than-expected inflation outcome from today’s CPI numbers could provide further impetus for USD/BRL selling and potentially challenging lows.
However, today’s higher-than-expected US inflation could provoke some pretty interesting buying, and if the 5.0380 ratio breaks further up, some traders may target 5.0500 to 5.0700 marks. You may doubt that.
USD/BRL has formed a fairly benign trading range over the past month, and speculators may have grown accustomed to polite values. Traders should be aware that if US inflation is astonishing today, choppy could turn into violent price action. With the Federal Reserve last week saying it would take a reactive approach to interest rates through the consequences of inflation, traders will need to practice prudent risk management and be prepared for the sudden disappearance of consolidated prices. I have. Current resistance:
5.0025 Current support:
4.9775 High target: 5.0730 Low target:
4.9170 Ready to trade your daily forex analysis? We’ve made a list of the best online forex trading platforms worth trading on.
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