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Greenback Under Pressure, USDBRL Targets Post BCB Lows

LATAM FX
  • The greenback came under initial pressure on the back of the (slightly) softer inflation report and higher than expected initial jobless claims data. USDMXN and USDBRL extended session lows with the intial boost for equities providing an additional tailwind for LatAm FX. USDCLP also opened with 0.55 percent losses amid the more optimistic sentiment across global markets but has moderated the move in most recent trade.
  • {BZ}USDBRL continues to edge away from noted resistance around 4.95 and is now approaching the post Selic rate cut lows between 4.84/85. A break below here would then target a move to close the gap with the Wednesday August 02 closing price which comes in at 4.8104. Key support remains at 4.6964, the Jul 28 low.

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