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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
BRAZIL
- The Brazilian real enjoyed a relief rally last week with a near 4% sell-off from top to bottom in USDBRL.
- Potentially oversold conditions for the local currency in play as well as the continued ascent of major benchmark indices, keeping global risk sentiment well buoyed and risky assets seemingly more attractive.
- USDBRL has opened half a percent higher to 5.57. Previous resistance just beneath the 5.50 level may now act as short-term pivot support for the pair.
- Wednesday's October IPCA Inflation data will be in focus, with the current median estimate expecting and increase to 10.48%. Brazilian retail sales for September also due on Thursday.
- Swap rates will continue to be driven by the political situation relating to precatorios, welfare programs and the associated adjustments to the spending cap.
- Lower house approved a bill in a first round by 312 votes vs the 308 required; a second round of voting is scheduled for Tuesday, but pressure from opposition parties has the potential to delay the process and increase uncertainty.
- The Supreme Court requested an explanation from the Lower House President Arthur Lira on the mechanism used to vote on the bill last week, which adds another layer of debate.
- Separately over the weekend: Nov 6 (Reuters) - Brazilian President Jair Bolsonaro lamented on Saturday that state-run oil company Petrobras sets domestic fuel prices independent of government interference and repeated his desire to privatize the firm.
MNI/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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