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President Lula To Meet With Bolivia President Luis Arce

BRAZIL
  • The Brazilian real traded in a relatively tight range against the dollar yesterday, with USDBRL closing 0.19% higher at around 5.47. Bullish conditions in USDBRL remain intact and the pullback from last week’s highs at 5.70 is considered corrective, for now. On the downside, initial support to watch lies close by at 5.4628, the 20-day EMA. The 50-day EMA lies at 5.3351.
  • Data wise, the calendar is light today, with focus ahead on June IPCA inflation data due tomorrow. Currently, analysts see the headline inflation rate rising further above 4% y/y. This will be followed by May retail sales on Thursday and services volume figures on Friday. Elsewhere, focus will be on Fed Chair Powell’s semi-annual testimony in front of the Senate banking committee today, at 1500BST(1000ET).
  • On the political front, President Lula is due to meet with Bolivia President Luis Arce at 1500BST(1000ET). Lula is scheduled to make a statement to the press at 1730BST, before participating in an official lunch offered by the Bolivian Presidency.

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