The Brazilian real continues under pressure and lost almost 2% vs. the USD closing at USD-BRL 3.1535 on Tuesday. Markets continue to await the voting results of the bills sent by President Rousseff to congress and that deal with austerity measures with all eyes looking at MP 665 that deals mostly with unemployment insurance and salary bonuses. The latest news from this bill came on Tuesday night with the constitutional guidelines voting taking place and clearing the floor by a tight 39 votes in favor to 32 against it. This measure will continue to be discussed in the senate in the next days until the senate floor votes the content of the bill. Time is of essence for these initiatives given its expiry date of June 1. That said, the BRL is expected to be under pressure in the next days following political developments and voting results and seeing levels close to USD-BRL 3.20 cannot be discarded, expects Commerzbank.
The material has been provided by InstaForex Company – www.instaforex.com