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BRL Set To Rise Amid Greenback Weakness, BCB Workers Suspend Strike

BRAZIL
  • Despite yesterday’s US Treasury rout, the Brazilian Real remained relatively resilient on Tuesday which may point to further outperformance at the open today.
  • DI Swap rates are likely to follow US yields lower, while market participants will focus on an auction of fixed-rate bonds ahead of the local Tiradentes Day holiday on Thursday.
    • Brazil’s Treasury will auction fixed-rate bonds maturing in 2022, 2024, 2025, 2029 and 2033; amount to be offered of each maturity will be announced around 9:30am E.T.
  • BCB workers suspended their strike for two weeks but will continue to protest for higher salaries, their union said in a statement late Tuesday.
    • It’s still unclear if this will allow the resumption of key economic data releases, including the bank’s weekly Focus survey with economists.

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