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Lula Plans To Announce New BCB Governor This Month

BRAZIL
  • According to Valor Economico, President Lula is planning to announce his choice for the new BCB governor by the end of this month, in order to reassure markets and have the process concluded before October’s municipal elections. Members of the government are reported to want to reach an agreement with congressional leaders, so that the legislative hearing and vote can take place in September.
    • Amidst the global sell-off in risk assets, USDBRL opened notably higher at 5.8551 on Monday, before paring the move in recent trade. The pair is currently up by ~0.5% around 5.775.
    • Bullish conditions in USDBRL remain intact, and the pair breach key resistance at 5.7008, the Jul 2 high, last week. The break confirms a resumption of the uptrend and opens 5.8981, the 1.764 projection of the Dec 27 ‘23 - Apr 16 - May 3 price swing.
    • On the downside, initial support lies at 5.5908, the 20-day EMA.

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