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BRL On Top, Outpacing Latam Peers

BRAZIL
  • BRL posting impressive gains and leading the Latam region in recent trade, with markets watching the proceedings in the lower house as lawmakers narrow in on a vote for the amendment bill as soon as today.
  • Most notably, the size of the spending allowance remains at BRL 145bln, clearing a negotiating point between the government-elect and lawmakers. The easier process here follows the top court ruling late yesterday, as flagged pre-market.
  • The timeline here is fast, with the lower house vote likely today, and any changes could revert to, and be concluded by, the Senate today also.
  • USDBRL is through the 100-dma at 5.2289, opening 5.1631, the early December lows as well as the 200-dma at 5.1237.

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