Dave Gibbs discusses how short-term rate policy headed in opposite directions for two key central banks – U.S. Fed rate hike, BCB rate cut – is impacting the Brazilian Real/US dollar exchange rate:

• FX futures are directly impacted by changes in central bank policies
• Many Brazilian economists expect BCB to continue lowering short-term rates
• CME Group FedWatch tool shows better than 90% probability of Dec Fed rate hike
• CME BRL/USD futures let you hedge risk on these diverging policies

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