The Brazilian real weakened sharply against the U.S. dollar after US President Trump announced 50% tariffs on Brazilian exports, effective 1 August.
In response, Brazilian President Luiz Inacio Lula da Silva announced Brazil would retaliate with the same rate on U.S. imports. Trump has already pledged to retaliate if Brazil retaliates.
USD/BRL rallied from just under 5.44 to a high near 5.63. On the 1-hour chart, the pair is now retracing but perhaps consolidating in a narrow range between the 61.8% and 38.2% Fibonacci zones.
With tariffs set to begin in under a month and both sides not ready to back down, USD/BRL remains sensitive.
In response, Brazilian President Luiz Inacio Lula da Silva announced Brazil would retaliate with the same rate on U.S. imports. Trump has already pledged to retaliate if Brazil retaliates.
USD/BRL rallied from just under 5.44 to a high near 5.63. On the 1-hour chart, the pair is now retracing but perhaps consolidating in a narrow range between the 61.8% and 38.2% Fibonacci zones.
With tariffs set to begin in under a month and both sides not ready to back down, USD/BRL remains sensitive.
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