October 22, 2024 14:53 GMT
BRAZIL: Government Not Expected To Review Health, Education In Spending Package
BRAZIL
- The government is likely to put off spending legislation for health and education in the upcoming spending review package, according to O Estada, citing a member of the economic team. According to the report, the government will probably not include a constitutional amendment reviewing minimal expenditures for health and education as part of the package, which is expected to be presented sometime after the second round of municipal elections this weekend.
- Although important for the long-term debt trajectory, the economic team reportedly wants to focus on more urgent issues in the final weeks of the year.
- USDBRL is trading in a tight range today, with the pair consolidating around the previously noted technical level of 5.6917, the Aug 30 high, which has recently been breached. So far, 5.7422, the 76.4% retracement of the Aug 5 - 19 bear leg, has capped the topside for the pair. Initial firm support lies at 5.5533, the 50-day EMA.
- Following the better-than-expected tax collections data earlier, focus turns to Thursday’s IPCA-15 inflation data on Thursday, which are expected to show a pick-up in headline inflation in the first half of October.
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