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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 EUROPEAN MARKETS ANALYSIS: China Equities Lower Post CEWC
MNI EUROPEAN OPEN: Sharp Fall In China Bond Yields Continues
BRL Outperforms Following Below-Estimate IPCA Inflation
- Brazilian assets are seeing support on Tuesday as the latest IPCA inflation data came in below expectations. The front-end of the DI swaps curve has shifted 5-7bps lower, the real (+0.73%) is outperforming its regional peers and the Ibovespa is registering gains of around 1.3% since the open.
- Despite the 5.00 level being pierced in early February, this technical pivot continues to cap the topside for USDBRL overall, and today’s price action sees the pair slip back into its familiar short-term range. Initial key support to watch lies at 4.9025, the Jan 26 low. A breach would be a bearish development.
- As a sidenote, Citi have pointed out that the government's FX hedge program for green investment should have limited impact on FX outright, but may put upward pressure on XCCY basis in the medium term.
- On the data front, focus turns to fourth quarter GDP figures due Friday, where annual GDP is expected to increase to 2.2% from 2.0% previously.
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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.