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4.84 Pivot Support Holds Again For USDBRL

BRAZIL
  • Despite Brazil’s central bank showing no signs that they would be willing to increase the pace of easing at coming meetings and adding some moderately hawkish tweaks in the latest statement, broader global themes and weakness in iron ore are dominating the early price action and weighing on the Real in early Thursday trade.
  • USDBRL has risen roughly in line with its Mexican counterpart, increasing the significance of the previously flagged pivot support at 4.8416, the Aug 10 low. The bull trigger remains at 5.0016, the Aug 18 high.
  • August tax collections data headlines the calendar today and it is worth noting finance minister Haddad and BCB President Roberto Campos Neto are scheduled to have lunch together in Brasilia. Focus now turns to the BCB minutes, inflation data and the quarterly inflation report next week.

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