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Central Bank Focus Survey Due, USDBRL Hovers Below 5.31 Resistance

BRAZIL
  • USDBRL continues to hover below noteworthy resistance at 5.3130, the Jul 8 high as President Bolsonaro's ongoing criticism of the electoral system enhances lingering anxieties for local assets. A notably light week for data before the next bi-weekly IPCA print due on August 25.
  • Central bank releases latest focus survey, with analysts estimates for GDP, FX, inflation and Selic rate, on its website shortly. Last week, economists raised their estimates for Selic rate in 2021 to 7.25% from 7.00%.
  • *Rollover of swap contracts due on Nov. 1 will begin on Monday, central bank said in a statement.
    • Volume of 279,305 contracts total $14b that expire on Nov. 1.
    • Monday's auction will offer up to 15,000 contracts, from 11:30am to 11:40am local.
    • New contracts will expire on Jan 3 2022 and May 2 2022.

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