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Brazil C/A Balance Due

BRAZIL

USDBRL the clear standout story in the region yesterday. A more hawkish BCB and a technical rejection prompted a very aggressive reversal in the pair and saw the Real lead the global charge (+3.2%).


Similar rhetoric form Bolsonaro overnight: "We are not going to let temporary crisis-related measures become permanent spending commitments." Guedes, however, did acknowledged that further temporary aid may be necessary if the second wave of Covid-19 hits the poorest Brazilians hard.


  • 1230GMT/0730ET Brazil Current Account Balance. Brazil is expected to report a current account deficit of $5.8b in December, according to Bloomberg survey, after a $202m surplus in prior reading.

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