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COPOM Decision In Focus

BRAZIL
  • Strong bounce for BRL after initial weakness on Tuesday with flattening seen in the swaps curve. USDBRL inched lower towards the major support area around 5.01 and a stronger MXN overnight may add a further tailwind for the Real today. With the FOMC announcement before market close, USDBRL will likely react with broader global sentiment around the decision, with one eye on the upcoming Copom decision after the close.
  • MNI Copom Preview here: https://roar-assets-auto.rbl.ms/documents/10461/MNI%20Brazil%20Central%20Bank%20Preview%20-%20June%202021.pdf
    • Brazil's IGP-10 inflation index rose 2.32% in June, slightly ahead of 2.23 estimate.
    • Today we have the expiration of Ibovespa options at B3
    • Rapporteur is expected to present report on Eletrobras' privatization bill at the Senate
    • Bolsonaro announces increase and says that Bolsa Família of 300 reais is 'practically agreed' (GLOBO)

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