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December Economic Activity Data Due

BRAZIL
  • After a thin week of trading around the carnival holiday, the Brazilian real remains rangebound, with USDBRL holding in a 4.96-4.98 range. Attention is still on key resistance at 5.0017, the Jan 23 high, while initial key support to watch lies at 4.9025, the Jan 26 low.
  • The focus today turns to December economic activity data, which will be released by the BCB at 1200GMT(0700ET). Analysts expect activity to have risen by 0.75% m/m in December following a +0.01% gain the previous month. Annual growth, however, looks set to slow to +0.45% y/y, from +2.19%. Weekly trade balance data will also cross at 1800GMT. Meanwhile, Finance Minister Haddad is scheduled to meet with Budget and Planning Minister Simone Tebet at 2000GMT.
    • Dec. Economic Activity YoY, est. 0.45%, prior 2.19%
    • Dec. Economic Activity MoM, est. 0.75%, prior 0.01%

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