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5.30/31 In USDBRL Continues To Cap Topside

BRAZIL
  • BRL staged a rebound yesterday, aided by the recovery in global equity indices and improved general risk sentiment. USDBRL resides in the middle of a clear short-term range. The gap to last weeks close is the most notable level on the downside at 5.12, with resistance remaining at 5.3130, Jul 8 high.
  • Brazil tax collection is expected to reach 139.8b reais in June, according to the median estimate in a Bloomberg survey, after hitting about 142.1b reais in the previous month. Economy Ministry releases numbers at 3pm BST/11am local on its website and hosts a press conference thirty minutes later.
  • Brazilian President Jair Bolsonaro said on Tuesday that he would veto a new 5.7 billion reais ($1.09 billion) electoral fund, potentially setting himself up for a fight with lawmakers whose support is crucial to fending off impeachment proceedings.

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