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BCB Comfortable Continuing With Easing, USDBRL Opens On Softer Note

BRAZIL
  • USDBRL opens on a softer note today following the 1% rally on Tuesday. Overall, technical conditions remain bearish and initial firm resistance is seen at 4.9535, the Nov 10 high. With volumes likely to decline ahead of the US holidays, market participants will be eyeing any developments regarding the senate voting on a bill aimed at increasing government revenue, key to the goal of a balanced primary fiscal budget next year.
  • Iron ore continues to reach fresh highs, commodity is up 1.1% in Singapore, rising for the third straight day even after Beijing took additional steps to try to cool the rally. China’s National Development and Reform Commission reiterated its stance against speculation in the iron ore market.
  • BCB Governor Roberto Campos Neto said in an interview with Bloomberg TV on Tuesday that the Copom has room to continue lowering interest rates as inflation is well-behaved, even if it remains a bit above the target, comments that he has been reiterating this morning.

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