INSUBCONTINENT EXCLUSIVE:
dollar gained ground against the Brazilian real in the past 24 hours, driven by a new wave of tariffs announced by the U.S
administration.Official sources confirm that the spot USD/BRL rate reached 5.561 this morning, up from 5.5475 at the previous close.The real
depreciated 2.26% against the dollar this week, reflecting the impact of trade policy and shifting investor sentiment.President Donald
markets.The tariffs, which take effect on August 1, extend earlier measures and exclude only energy and essential minerals.Trump cited trade
imbalances and political disputes as reasons for the move.The announcement also included a 35% tariff on Canadian goods and the possibility
warned of reciprocal measures if talks fail
dollar index (DXY) closed at 97.87 yesterday, up 0.22%
The dollar benefited from safe-haven flows as investors reacted to the trade dispute.Trade Tensions Spark Dollar Rally, Brazilian Real Faces
Steep DeclineTrade Tensions Spark Dollar Rally, Brazilian Real Faces Steep DeclineThe U.S
fundamentals added pressure to the real
The country reported a trade deficit in June and weaker industrial output, which reduced foreign currency inflows
Falling prices for key exports like oil and iron ore compounded the negative outlook.Technical analysis of the USD/BRL pair supports the
The daily chart shows a bullish reversal, with the price breaking above the 50-day and 100-day moving averages.The MACD indicator crossed
into positive territory, while the RSI rose to 54.16, indicating growing momentum but not yet overbought conditions.Bollinger Bands widened,
reflecting increased volatility.The 4-hour chart reveals a sharp rally after the tariff announcement, with the RSI reaching overbought
territory at 66.29 and the MACD confirming strong momentum.Immediate resistance stands at 5.58 to 5.62, while support lies at 5.51 and
5.48.Volume spiked as traders repositioned for higher volatility
ETF flows showed risk aversion, with outflows from emerging markets and inflows into U.S
assets.No official data indicated significant Brazil-specific ETF moves, but broader trends favored the dollar.Market sentiment remains
Investors await further developments in trade negotiations and monitor for any signs of diplomatic progress.The combination of aggressive
