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BRL Notable Outperformer Ahead of Fed and BCB Meetings

BRAZIL
  • BRL the clear outperformer yesterday as the bounce above 5.10 seems to have met solid supply, despite weaker than expected activity data.
  • With dollar indices broadly unchanged, expectations are for USDBRL to hold above the 5.01 support as we approach the Fed decision on Wednesday.
  • However, with markets anticipating a hawkish tilt to the BCB statement after markets close on Wednesday, the significant horizontal pivot level should be watched as positioning is adjusted beforehand.
    • Our full preview with analyst views will be published shortly.
  • Brazil's Treasury hold auctions of inflation-linked NTN-B local notes due 2026, 2030 and 2055.
  • Day 1 of June Copom meeting.

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