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Lowest Close For USDBRL Since June 2020

BRAZIL
  • Following the more hawkish BCB minutes, USDBRL extended lower into the close, aided by a weaker dollar and buoyant equity indices. The 4.9596 close represents the lowest close since June 2020 and confirms bearish technical conditions for the pair. An initial target for the next leg lower sits at 4.8187, the June 2020 lows.
  • Released this morning: Brazil's IPC-S Weekly Inflation Index 0.57% M/m; Est. 0.65%
  • Reports late last night that Brazil is leaning toward a more ambitious inflation goal of 3% for 2024 in a bid to signal policy makers' commitment to keeping price rises in check, according to three people familiar with the discussion.
    • A final decision has not been made yet and some members of the economic team argue for maintaining the target at 3.25%, the same level set for 2023. (BBG)
  • Sao Paulo Governor Joao Doria holds press conference on Covid-19, 12:45pm
  • Central bank's Campos Neto in Brasilia: 6:45pm - Meets with Supreme Court Justice Gilmar Mendes

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