Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
FxWirePro: Daily Commodity Tracker - 21st March, 2022 
Japan Government Backs Earlier BOJ Rate Hike as Inflation Pressures Build 
RBI Holds Repo Rate at 5.25% as Inflation Risks and Global Uncertainty Persist 
BOJ Rate Decision in Focus as Sticky Inflation, Weak Yen Shape USD/JPY and Nikkei Outlook 
Japan Services Producer Prices Rise 3.2% in June, Supporting BOJ Rate Hike Expectations 
Australia Inflation Cools as Core CPI Misses Forecasts, Easing RBA Rate Hike Pressure 
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In an environment where economic activity continues collapsing and the political commitment to push the necessary structural reforms is nonexistent at this point,this trend is not over.
"Although the BRL has underperformed its peers during the past weeks, further weakness is seen ahead during the next few quarters. Some correction might be possible in the next weeks as technical factors are close to oversold and positioning looks somewhat extreme", says Barclays.
Furthermore, a delay of meaningful changes in the administration poses non-linear risks to Brazilian assets, as such, some upside risks are seen (an acceleration in the price action) if things really get out of control.
"Moreover, low hedging ratios because of the high cost of carry should support this view for USD/BRL. On the former, the BCB is expected to confirm its commitment to keep the SELIC rate unchanged for some time, something that should dampen expectations for further tightening in the meetings to come. For the latter, an increase of 0.25% m/m is expected in the IPCA for August, little below market expectations of an increase of 0.31%", added Barclays.
