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BRL Recovers, Local Swap Rates More Pessimistic

BRAZIL

USDBRL closed 0.4% lower at 5.3087 with a small continuation lower from yesterday, most likely as a result of falling US yields. The relatively constrained 1.5% range today felt like a respite from recent volatile sessions. Local swap rates, however, continued to reflect a sense of pessimism surrounding the Covid situation and the ensuing headwinds for the fiscal trajectory.


  • Today, Guedes and Campos Neto will be meeting so I will be monitoring closely for any headlines that are released.
  • A lack of domestic data again should keep moves driven by President Elect Biden's Stimulus package announcement.

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