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BRL Outperforming Ahead Of July 22 Revenue And Expenditure Report

BRAZIL
  • Despite the spike in the greenback following the stronger-than-expected US retail figures earlier, the Brazilian real is outperforming peers and has extended gains against the dollar. USDBRL is currently trading ~0.6% lower on the session, close to the 5.41 level.
  • The pair has been broadly respecting support at the 50-day EMA, which currently lies at 5.3546. A clear break of this average would highlight a potential reversal of the recent medium-term uptrend.
  • On the data front, the calendar is light for the rest of this week, with attention turning to the federal government's revenue and expenditure report, which will be presented on July 22. Finance Minister Haddad has previously said that recently-announced fiscal measures could be brought forward depending on the details of this report.

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