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Bolsonaro Sparks BRL Rally

BRAZIL

Brazil President Bolsonaro said the government cannot continue with its cash handouts indefinitely, signaling policy makers don't intend to extend the benefit that expires at the end of 2020.

  • The comments regarding not can be viewed as a positive in reference to adhering to the spending cap. 2 year swap rates down 10 basis points amid buoyant risk sentiment.
  • USDBRL through the 200day and breaking the 5.2750 lows. Our Technical Analyst highlights the next cluster of support in USDBRL:
  • SUP 1: 5.2250 Low Nov 9 and bear trigger
  • SUP 2: 5.2120 Low Sep 16
  • SUP 3: 5.1966 61.8% of the Jun - Oct rally

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