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President Lula To Receive Fiscal Framework Plan This Week

BRAZIL
  • Short-term conditions for USDBRL are unchanged as markets await further details on the fiscal framework ahead of next week’s Copom meeting.
    • Price structure appears bullish - the latest recovery reinforces this theme. A continuation of gains would open 5.3518 next, the 76.4% retracement of the Jan 4 - Feb 2 bear leg. The bull trigger is 5.3073, the Feb 10 high.
    • On the downside, initial support to watch lies at 5.1012, the Mar 8 low. A break of this level would instead signal scope for a return to 4.9410, the Feb 2 low.
  • Latest headlines on the fiscal framework:
  • HADDAD TO SEND FISCAL PLAN TO BUDGET BOARD THIS WEEK: COSTA (BBG)
  • LULA WILL RECEIVE FISCAL FRAMEWORK PLAN THIS WEEK: HADDAD (BBG)
  • HADDAD SEES BRAZIL ELECTRONIC GAMES BILL READY AFTER CHINA TRIP (BBG)

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