The USD/BRL has once again entered its lowest depths. Yesterday’s finish around the 5.1985 ratio may have been above the lowest ratios seen on Monday and Tuesday, but the USD/BRL remains well within sight of the 5.1750 mark. Today’s opening will prove interesting to gauge existing behavioral sentiment, particularly as USD centric weakness has been seen in early Forex trading in other major currency pairs the past handful of hours.
Yes, from the 27th until the 30th of January, the USD/BRL also was able to traverse its current values. However, the fact that the Brazilian Real has not conquered lower realms via the USD/BRL should not be looked upon as a defeat, what should standout is that financial institutions continue to lean into a stronger Brazilian Real attitude. The last time the USD/BRL was within its current realms for a sustained time was in May of 2024.
U.S Inflation Numbers Coming Friday
As long as financial institutions in Brazil and globally feel confident enough to look away from domestic economic considerations and execute the USD/BRL based on behavioral sentiment with the broad Forex market, this is good news for the Brazilian Real. The USD weaker attitudes that are being seen globally has a lot to do with the perception the Federal Reserve will pursue lower U.S interest rates over the mid and long-term.
Today the U.S will release jobs numbers – the report was not released last Friday due to a limited government shutdown. However, the Non-Farm Employment Change results may not have the impact that some usually anticipate, this because financial institutions are looking ahead to Friday’s upcoming Consumer Price Index figures. The inflation numbers this Friday from the U.S will impact the broad Forex market.
Positioning Ahead of the Data Release
Day traders should watch today’s opening of the USD/BRL. If it maintains value below the 5.2000 mark and shows legitimate signs of challenging the 5.1800 level again, this likely means financial institutions are positioning themselves ahead of Friday’s U.S inflation reports.
- Yes, the jobs numbers could cause short-term volatility, but day traders need to understand the biggest impetus – as long as the job numbers are somewhat close to expectations – will be Friday’s CPI results.
- If the U.S inflation numbers meet expectations or come in lower, the USD/BRL may find itself challenging new lows.
- However, because the report is not until Friday, larger players may try to positions themselves ahead of the data.
- Choppy trading may be seen today because of the U.S jobs report and then things should settle down again as equilibrium is sought before the big inflation numbers.

Brazilian Real Short Term Outlook:
Current Resistance: 5.2020
Current Support: 5.1920
High Target: 5.2435
Low Target: 5.1710




















