Brazil’s Central Bank cuts benchmark rate by 75 basis points, USD/BRL stays unfazed

Banco Central do Brasil, the central bank of Brazil, announced 75 basis points (bps) of a rate cut on early Thursday morning in Asia. The outcome was widely anticipated and offered no surprises to the USD/BRL traders.

Having said that, the USD/BRL pair marks a drop from 5.2308 to 5.2291 after the release. It’s worth mentioning that the markets in Brazil are yet to open and may offer a volatile session due to the central bank’s action. However, the major attention will be given to the coronavirus (COVID-19) updates and the US dollar performance will also be  the key to follow for immediate reaction.