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Real Optimism Fades, USDBRL Tests 5.70

BRAZIL
  • Initial optimism in the Real appears to have been a product of a slightly lower US dollar and regional currency strength. Despite the Mexican and Chilean Pesos holding onto gains the Real has reversed, prompting USDBRL to take out Friday's highest levels, testing 5.70 and closing the April 1st-5th gap.
    • Political tensions continue to mount amid uncertainty about the 2021 budget impasse and the senate probe into possible faults in President Jair Bolsonaro's management of the pandemic.

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