Free Trial

Central Bank To Continue Intervening, Q4 GDP Due

BRAZIL

A very volatile day in local swap rates that saw the belly and long end of the curve shift higher by 40 basis points at it's most extreme. Pressure eased throughout the session with the DI curve ending bear steeper by between 7-16 bps.


BRL also came under severe pressure despite multiple spot interventions from the BCB. USDBRL traded as high as 5.7323 before broader US dollar weakness aided a Real recovery. Campos Neto made comments overnight regarding FX interventions and inflation:

  • Brazil central bank to keep acting in FX to lift liquidity
  • Brazil must keep its fiscal credibility
  • Important to keep calm on inflation
  • Brazil has set of measures to fulfil inflation target (all bbg)

Today's data:

  • 03-Mar 1200GMT/0700ET Brazil Q4 GDP – Expected 2.8% q/q vs. 7.7% prior
  • 03-Mar 1200GMT/0700ET Brazil Q4 GDP – Expected -1.6% y/y vs. -3.9% prior

To read the full story

Close

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.