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Monthly Trade Balance Data Scheduled, BRL Buoyed By Commodities

BRAZIL
  • Despite USDBRL trading higher above 5.20 at the open following the Carnival holiday, the pair gradually edged lower to close at 5.10 and around 1% lower from last week’s close. The moves are extending below 5.10 today as the real continues to be supported by surging commodities.
    • Treasury auctions fixed-rate LTN local notes due 2023, 2024 and 2025; fixed-rate NTN-F local notes due 2029 and 2033
    • 1300GMT/0800ET: Feb. Markit Brazil PMI Manufacturing, prior 47.8
    • 1800GMT/1300ET: Feb. Trade Balance Monthly, est. $3.48b, prior -$176m, revised -$214m
  • The Sao Paulo-based asset manager Ibiuna Investimentos built positions in shares of Brazilian miner Vale amid a recovery in iron-ore prices, according to a note to clients referring to its equity funds.
    • In a note referring to its macro hedge funds, Ibiuna said it added a long BRL/USD position, hedged by a short position in the benchmark Ibovespa index.

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