Brazil’s president is one step closer to impeachment — Here’s what’s happening in FX

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Good morning!

Here are the big moves in FX on Tuesday, April 12 as of 8:15 a.m.:

  • The Brazilian real is stronger by 0.4% at 3.4838 after a impeachment committee in Brazil’s lower house of Congress voted in favour of moving ahead with the impeachment proceedings of President Dilma Rousseff, 38-27. The proceedings will now move to a full lower house vote, where a two-thirds majority vote in favour of impeachment would push the proceedings to the upper house, which would just need a simple majority to oust Rousseff.
  • The British pound is 0.6% stronger at 1.4322 after the Office for National Statistics said the UK’s consumer price index rose 0.5% year-over-year in March, above estimates of 0.4%. Additionally, core inflation rose to 1.5%.
  • The euro is little changed at 1.1403 following reports that Italy’s struggling banks will receive a €5 billion bailout. Additionally, German CPI rose 0.8% month-over-month in March, in line with expectations.
  • The Japanese yen is modestly weaker by 0.4% at 108.34 after reaching as high as 107.63 on Monday. Eisuke Sakakibara, the former Finance Ministry official who is referred to as Mr. Yen told Bloomberg TV in an interview that the currency may appreciate to 105 in the next few months, and could get to 100 by year-end.
  • The dollar index is little changed at 93.93 ahead of a few data points. Import/export prices will be released at 8:30 a.m. ET and the Treasury budget will cross at 10 a.m. ET.

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