Forex Flash: BCB 50bp Selic rate cut and Fed's Bernanke  TD Securities

FXstreet.com (Barcelona) - In Brazil, the central bank cut the Selic by 50bp, as expected, to a record low of 7.5%. TD Securities analysts believe the statement is suggests that the easing cycle is close to the end: "In particular, the BCB removed the reference to the limited risks to inflation and the "continuing adjustment of monetary conditions", mentioning instead the ongoing economic recovery", wrote analyst Alvin Pontoh.

In regard to today's US jobless claims, Pontoh expects the market to ignore the indicator as the Fed's Bernanke speech at Jackson Hole is tomorrow. "Initial jobless claims are expected to come in little changed at 370K, and income and spending are both expected to record gains of +0.3% M/M and +0.5% M/M, respectively", said the analyst.