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New Record Daily Death Toll Amid Political Turmoil

BRAZIL
  • Brazil's coronavirus death toll rose by 3,780 on Tuesday. The new daily record comes in the same 24 hours as the departure of Brazil's three top military commanders just a day after Bolsonaro's most dramatic cabinet overhaul since taking power. The ministry said the heads of the army, navy and air force would be replaced, without giving details in a statement.
  • Brazilian assets had a volatile session with the Real closing broadly unchanged and the local swap curve lower by between 6-19 basis points. Initial pessimism in markets was attached to finance minister Guedes' comments regarding a potential soft breach of the spending cap for temporary covid relief payments. After briefly printing 5.80 USDBRL reversed as markets cling on to optimism that Bolsonaro's cabinet reshuffle may improve the government's relationship with congress.
  • *National Unemployment rate at the top of the hour – Expected 14.1% vs 13.9% Prior

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