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Bullish Developments For BRL, No Surgery For Bolsonaro Yet

BRAZIL
  • USDBRL closed right on initial support around 5.0756, the Jul 6 low. BRL posted another very strong session with just shy of 2% gains. An extension of the move lower in oil, combined with the marginally firmer greenback may weigh on Real at the open, however, a sustained break back below the 50-day EMA appears to highlight a bearish theme and may expose 5.00 and the Jun 25 low of 4.8934.
  • President Bolsonaro was taken by ambulance from the military hospital in Brasilia and transferred to Sao Paulo for a possible emergency surgery. He was diagnosed with an intestinal obstruction, according to a statement from the presidential press office.
    • Reports overnight suggested surgery would not be needed for now and the President will receive treatment.
    • Flavio Bolsonaro, a son of Brazilian President Jair Bolsonaro, said on Wednesday that his father had been having trouble talking. He commented that any potential surgery should not be a serious procedure.
  • Treasury auctions fixed-rate LTN local notes due 2022, 2023 and 2025; fixed-rate NTN-F local notes due 2027 and 2031; and Selic-linked LFT notes due 2023 and 2027.

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