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Likely to be a lot of attention on...>

BRAZILIAN REAL
BRAZILIAN REAL: Likely to be a lot of attention on the BRL spot rate when it
re-opens in a few hours' time after the Brazilian central bank unexpectedly cut
rates by 50bps vs. a forecast of 25bps. With the SELIC rate now at 6.0%, that's
the lowest Brazilian rate on record (per BBG data). The Brazilian central bank
also indicated that further stimulus is likely in the coming months, dependent
on inflation and growth metrics.
-The move by the BCB could tip USD/BRL north of the 200-dma at 3.8269 at the
open, with the 50-dma also not far off at 3.8475. Resistance should be found at
the mid-June highs of 3.9233.

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