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BRAZIL: Campos Neto to Speak in Congress, USDBRL Steady at 5.50

BRAZIL
  • BCB Governor Campos Neto is set to speak about monetary policy at a public hearing in a Congressional committee. Speaking yesterday, he said the Copom will unanimously do "whatever it takes" to bring inflation back to the 3% target, highlighting the recent uptick for inflation. Additionally, BCB’s Galipolo said that interest rate hikes are on the table on the back of worsening inflation expectations, echoing the minutes from the July meeting.
  • USDBRL held a very tight range on Monday, oscillating either side of 5.50 for the majority of the session. Overall, bullish conditions remain intact, and the latest pullback is considered corrective. However, a clear break of the 50-day EMA (intersecting today at 5.4934) would undermine a bull theme and signal potential for a deeper retracement towards 5.3709, the Jul 11 low.
  • Tier-two data highlights an otherwise subdued regional calendar at 1300BST/0800ET:
    • June IBGE Services Volume YoY NSA, est. 0.8%, prior 0.8%
    • June IBGE Services Volume MoM SA, est. 0.9%, prior 0%

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