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Local Stocks Narrow Gap With January High

BRAZIL
  • USD/BRL closed lower, at 5.5718, Thursday and touched new April lows of 5.5396. Markets watched further comments from the finance ministry, who further stressed that BRL remains undervalued.
  • The 50-dma remains key going forward after markets tested the level Thursday. It undercuts at 5.5435 today and a break and close below opens further losses toward 5.4499 and the 200-dma below at 5.4230.
  • DI futures traded slightly lower Thursday, but generally inside recent ranges while local Brazilian stock markets hit new multi-month highs to further narrow the gap with early January's record high.

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