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Brazil Expenditure And Revenue Report Expected

LATAM
  • A quiet week in LatAm comes to a close with some moderate pressure on MXN pointing to local currencies potentially opening under pressure. Brazil’s Finance Ministry discloses 2023 budget bimonthly report on expenses and revenues at 1730BST/1230ET.
  • The Japanese Yen is offered solidly across G10 headed into the NY crossover, with concurrent BoJ sources reports raising expectations that the BoJ's yield curve control programme will be unchanged at next Friday's central bank meeting/decision. USD/JPY (+1.25%) has rallied solidly on the report, rising well through the recent highs to trade at the best levels since July 10th, just below the 142.00 handle at typing. JPY implied vols are well bid, with the one-week contract now capturing the BoJ decision and crossing 16 points to trade at the best levels since March.
  • Grain markets have moved on a headline suggesting that Ukrainian President Volodymyr Zelensky has instructed his military to unliterally safeguard Black Sea grain export corridors.

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