Brazil Surprises, Euro's In a Funk

Brazil slashes interest rates and manufacturing reports disappoint in Europe and Britain — time for your FX Fix.

Contrary to widespread expectations, Brazil slashed interest rates 50 basis points. [CNBC]

Weak euro zone manufacturing data is weighing on the euro. [FT]

Ditto in Britain, where the pound is weaker on a two-year low in manufacturing sector growth. [RTT]

The South Korean won is stronger on reports of robust inflation and a continued trade surplus, but worries about global growth may interfere. [WSJ]

The dollar rose in Asian trading on buying by Japanese banks and overseas funds. [WSJ]

A better than expected retail sales report is lifting the Australian dollar. [fxstreet.com]

There is talk that Prime Minister Noda picked a hawkish ally to be finance minister. [CNBC]

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