MNI China Daily Summary: Thursday, June 20

NORGES BANK HEAD: EITHER HIKE OR EARLIER CUT POSSIBLE

NORGES BANK HEAD SEES POLICY RATE AT 4.5% TO END YEAR

MNI: PBOC Net Injects CNY18 Bln Via OMO Thu; Rates Unchanged

CHINA PBOC CONDUCTS CNY20 BILLION VIA 7-DAY REVERSE REPOS THU

MNI: PBOC Sets Yuan Parity Higher At 7.1192 Thu; -1.93% Y/Y

IFO Upwardly Revises 2024 Growth Forecast by 0.2pp to +0.4% Y/Y

NOK Little Changed Ahead of Norges Bank; Hold In Rates Expected

Intermediate Goods Deflation Continues to Fade in May PPI

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Lula Victory Places Focus On Brazil’s Fiscal Trajectory

BRAZIL
  • Given the positive market reaction following the first-round of Brazil’s presidential election, one may assume Brazilian assets may struggle at today’s open. However, the degree to which risk premium was already embedded in domestic asset prices may limit the initial impact and add weight to the potential for a ‘buy the dip’ strategy, especially if there is a peaceful transition of power.
  • Additionally, comments in his victory speech, about the dangers of a divided country, may signal that he could take a moderate approach to governing Latin America’s largest economy. Lula’s cabinet picks now become of vital importance for local markets as participants attempt to gauge the economic expectations of the Lula administration.
  • USDBRL had been consolidating over the course of last week and attention remains on resistance at 5.4286, the Sep 29 high. Clearance of this level would expose 5.5142, the Jul 21 high and a key resistance. On the downside, key short-term support has been defined at 5.1121, the Oct 4 low. A break lower would instead highlight a bearish development.
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.