Emergency Bill Vote Scheduled For Wednesday

The focus this week will be on the Emergency bill, which is expected to go to a vote on Wednesday. The vote was scheduled for last Thursday but was postponed amid a divergence of lawmakers' opinions.

• This prompted local assets to trade on the backfoot. Evidence of this was markets fully pricing in a 50 basis points cut of the Selic rate at the BCB's next meeting on March 17th.
• Additionally, BRL was the second-worst performer among 24 emerging-market currencies tracked by Bloomberg last week, down 3.9%. This was despite multiple rounds of central bank intervention in the currency market, via FX USD spot auctions. On Friday, via two auctions, the central bank sold $1.545 billion and this was not enough to bolster the Real which closed towards it's worst levels of since November.

• 1300GMT/0800ET - Brazil Markit PMI Manufacturing – Prior 56.5
• 1800GMT/1300ET – Brazil Feb Trade Balance – Expected surplus $800 million vs prior deficit of $1.125 billion