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Real Struggles Following Shocking Retail Sales Report

BRAZIL
  • USDBRL 1% higher on the open following the shocking retail sales report. Worth noting BCB intervened around 5.43 yesterday, a level which holds for now. Most notable short-term resistance is 5.4560 from late last week.
  • Regarding the retail sales report, the figures represented the biggest plummet on record for the month of December. The declines were broad based in all major product categories, pointing to a sharp slowdown in the recovery of Latin America's largest economy.
  • Separately, the Lower House agreed to fast-track the central bank autonomy bill yesterday, which will be voted on today. Headlines will be closely monitored surrounding any plans to restart the emergency cash handouts.

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