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IPCA Inflation Data Due Friday

BRAZIL
  • Despite USDBRL rising on Tuesday in line with the broad USD strength, the real’s sell-off was moderate in comparison to the moves across G10 currency markets. Indeed, USDBRL intially pared around half of yesterday’s advance at the open, trading down to around 5.1700.
  • The local agenda is thin as market participants continue to await news on the new fiscal framework. Friday’s inflation data remains the key data point this week, where the annual headline rate is expected to print 5.53% from 5.63% in the latest mid-month reading, released on February 24.
  • Fed Chair Powell will speak again at the US congress, however, the second day of testimony usually brings no new information.

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