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BRL Extends Gains To 1.75%, Lira Affirms Spending Cap Commitment

BRAZIL

Speaker Lira says:

  • Brazil won't break fiscal sustainability (BBG)
  • Brazil won't practice fiscal irresponsibility (BBG)
  • Brazil spending cap breaking is not viable at congress (BBG)
  • Brazil income tax reform voting not impossible, but hard (BBG)
  • Brazil reform won't be in this week voting agenda (BBG)
    • USDBRL extending lower, with Real gains totalling 1.75% on the session.
    • The current pullback is considered technically corrective, initial support is at 5.2218, the 50-day EMA.

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