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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.
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Free AccessMNI China Daily Summary: Wednesday, December 11
BRL Buoyed By Fiscal Framework Optimism, Risk Rebound
- Firmer risk sentiment is benefitting the Brazilian Real to start the week as equity markets recover the early Monday sell-off. Additionally, the optimistic tone of ministers regarding the latest discussions with the President over the fiscal framework are acting as an additional BRL tailwind.
- Latest headline: *BRAZIL GOVT TO REACH AGREEMENT ON NEW FISCAL FRAMEWORK: ALCKMIN
- Despite the move lower for USDBRL, short-term conditions remain bullish. Last Wednesday’s price activity resulted in a test above resistance at 5.3073, the Feb 10 high and a key hurdle for bulls. The breach opened the potential for a move to 5.3518 next, the 76.4% retracement of the Jan 4 - Feb 2 bear leg, ahead of the 5.4000 handle.
- On the downside, key support to watch lies at 5.1012, the Mar 8 low. A break of this level would instead signal scope for a return to 4.9410, the Feb 2 low. Initial support lies at 5.2038 the 50-day EMA.
- As well as the BCB decision on Wednesday, mid-month IPCA inflation data will be released on Friday.
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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.