Brazilian Real: LatAm policy paths and FX levels – Societe Generale

FXStreetJun 24, 2026 6:23 PM

View all comments（0）



Societe Generale’s Emerging Markets (EM) strategists say the Brazilian central bank, Banco Central do Brasil (BCB) minutes support an easing cycle with pauses to guide inflation back to 3% by 1Q28, leaving USD/BRL approaching its 200‑day moving average at 5.25.

Central bank signals steer LatAm FX

"In LatAm, minutes from the BCB meeting support our house view that the easing cycle will be interspersed with pauses to guide inflation back to the 3% target by 1Q28. "

"Policymakers signal a preference to track a path closer to market and analyst expectations to limit financial and macro volatility."

"That said, the minutes do not fully explain the decision to drop rates by 25bp last week despite signalling upside inflation risks. "

"The quarterly inflation report tomorrow should provide more clarity on the policy path ahead."

"USD/BRL is closing in on the 200dma at 5.25."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

Comments (0)

Click the $ button, enter the symbol, and select to link a stock, ETF, or other ticker.

Commenting Guidelines

Recommended Articles

Google Q2 Cloud Revenue Surges 82%: Net Profit Soars 298% YoY, 26% QoQ Capital Expenditure Growth Sparks Sharp Bull-Bear Divide

TradingKey - Alphabet (GOOGL, GOOG) released its second-quarter 2026 financial results after the close of U.S. markets on July 22, Eastern Time. As of press time, Google’s revenue for the period reached $119.796 billion, up 24% year-over-year (23% on a constant currency basis), exceeding market expectations of $116.93 billion. This marks the company's 12th consecutive quarter of double-digit revenue growth. Notably, Google Cloud performance was a highlight, with revenue surging 82% year-over-year to $24.8 billion.

SpaceX Shares Fall Over 5% to Hit New All-Time Low: Plans New Data Center in Texas, Morgan Stanley Warns xAI Capex May Reach $120 Billion

TradingKey — On July 22, Eastern Time, SpaceX (SPCX) shares hit a new record low, falling 5.32% to $116.97 as of publication. Reports indicate that SpaceX AI is further increasing its investment in data center construction, with a scale comparable to the gigawatt-level capacity of the existing Memphis campus. However, the company's Q1 AI-related capital expenditure has surged to $7.7 billion, approximately three times the amount from the same period last year. Morgan Stanley analysts predict that xAI will consume a total of up to $120 billion in cash between 2026 and 2027—a figure nearly 1.6 times the $75 billion raised in SpaceX's IPO.

Western Digital (WDC) Surges 12.5% to $548 - Kioxia Merger Talks, $900 Analyst Target

TradingKey - Western Digital surged 12.5% to $548 today as memory stocks rebounded and Kioxia merger talks resumed. HDD production is sold out through 2026. Cantor Fitzgerald targets $900, Citi $800. Earnings August 5. Here is the setup.

AMD to Invest $5 Billion in Anthropic, Signs Multi-Billion Dollar AI Chip Orders, Striking at Heart of Nvidia’s Monopoly

TradingKey - On July 22, Eastern Time, The Wall Street Journal reported that AMD and AI company Anthropic have signed a multi-billion dollar AI server partnership agreement. According to the terms of the agreement, Anthropic will procure up to 2 gigawatts (GW) of AMD’s next-generation AI chip, the Instinct MI450, for its data centers starting in the first half of 2027, and may lease a portion of the computing power through other major cloud service providers or new cloud vendors.

Alphabet Q2 Earnings Preview: $190 Billion AI Gamble Faces Major Test, Can Google Cloud Still Sustain the Growth Myth?

TradingKey - Alphabet (GOOGL) (GOOG) will release its second-quarter 2026 financial results after the U.S. market close on July 22. As one of the world's most valuable technology companies by market capitalization, Alphabet’s business spans multiple sectors including search advertising, YouTube, Google Cloud, generative AI, and autonomous driving. Its earnings performance not only impacts its own stock price but is also regarded as a crucial bellwether for the global AI investment cycle.

Featured Tools