Wed, May 21 2014, 14:53 GMT

FXStreet (Łódź) – Brazil’s Mid Month Inflation growth decelerated to the slowest pace seen since November, according to data published on Wednesday. This is good news for Brazil’s central bank which will be able to stop hiking the benchmark rate for now, currently at 11%, in the face of price pressures remaining under control in the last two months.

Brazilian CPI
slowed to 0.58% in May, following a 0.78% rise seen previously, Instituto Brasileiro de Geografia e Estatistica said on Wednesday. The deceleration was attributed to an easing of increases in foodstuffs’ prices. Year-on-year inflation climbed slightly to 6.31% from 6.19%.

Meanwhile, Mexican Retail Sales surprised to the upside, rising by 0.8% in March, compared with the 1.3% fall in February and against consensus of a 0.2% decline. Year-on-year Retail Sales jumped 1.7%, following a 1.7% drop and against forecasts of a 1.5% decrease.


At the moment of writing USD/BRL was down 0.14% at 2.2075.

On Tuesday the USD/BRL daily FXStreet Trend Index was strongly bearish, with the OB/OS Index neutral. RSI was at 45 at the last close, and has slid to 40 so far today. Daily 2-StDev Volatility Bandwidth was shrinking at 97 pips, with ATR (14) shrinking at 183 pips. The 1D 200 SMA was at 2.3019, while the 1D 20 EMA was at 2.2249.