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Finance Ministry’s Macrofiscal Bulletin Expected At 1730BST

BRAZIL
  • BRL had a volatile session yesterday as news that Petrobras CEO Prates had been fired weighed on sentiment initially, before the real recovered somewhat as the dollar weakened following the in-line US CPI and weak US retail sales figures. For USDBRL, support around the 50-day EMA, at 5.0826, has recently been pierced. A clear breach would open 4.9984, the Apr 10 low. Key short-term resistance has been defined at 5.1969, the Apr 30 high.
  • Data wise, FGV IGP-10 inflation data for May will be released at 1200BST(0700ET), with analysts looking for a 0.95% m/m increase, vs. -0.33% prior. Meanwhile, the finance ministry will publish its Macrofiscal Bulletin for May at 1730BST, with forecasts for GDP growth, inflation and the fiscal outlook.
  • On the political front, President Lula will meet with Finance Minister Haddad and Institutional Relations Minister Alexandre Padilha at 1430BST(0930ET).

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