Brazil’s central bank meets tomorrow to set the SELIC target rate. No change from the 7.25% target is expected and all 54 economists surveyed by Bloomberg are unanimous. There is no set time but it’s usually at the end of US trading.

The focus will be on the commentary and there is a chance for a hawkish turn. The current statement suggests rates will be left unchanged for a “sufficiently long period of time”.

Look for comments on the global economy — Brazil tends to be a good proxy for China and emerging markets.

USD/BRL is down 4.3% this year.

USDBRL daily chart

USDBRL daily chart