The Road To July Rate Cut Runs Through the Brazilian Zone

One way is for whatever it is spooking the markets to finally turn up out of the shadows, the liquidity fears being realized in a big way. Another is for the global economy to start posting minus signs in those major accounts. In fact, the two may go hand in hand; a serious dollar shortage becoming more serious would be one potential explanation for negatives in major data points. And that brings us to Brazil.