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COPOM And Fed Decisions In Focus

BRAZIL
  • USDBRL moved back above 5.10 on Friday as the dollar enjoyed a strong bounce heading into the weekend. Despite the uptick in spot, some desks noted increased interest to go short above 5.10 with interest coming from both off-shore and on-shore clients.
  • This week the focus will be on central bank decisions from both the BCB and the FOMC. The COPOM are expected to increase the Selic rate by another 75 basis points to 4.25%. All analysts are aligned in their forecasts for this decision; however, the language will be keenly eyed as the most recent inflation readings continue to display the persistence of upward price pressures.
  • Today:
    • 14-June 1300/0800 – Brazil April Economic Activity (Est 1.35% m/m, Prior -1.59%)
    • 14-June 1300/0800 – Brazil April Economic Activity (Est 18.2% y/y, Prior 6.26%)
    • Central bank releases Focus survey, with analysts' estimates for GDP, FX, inflation and Selic rate on its website at 0825 local time.

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