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Steady Open for BRL

BRAZIL

The BCB's weekly economist survey saw inflation and SELIC rate forecasts raised:

  • 2021: Inflation raised to 4.71% (prev. 4.60%), GDP cut to 3.22% (Prev. 3.23%), Year-end FX unchanged at 5.30, Year-end SELIC raised to 5.00% (Prev. 4.50%)
  • 2022: Inflation raised to 3.51% (prev. 3.50%), GDP unchanged at 2.39%, Year-end FX raised to 5.25 (prev. 5.20), Year-end SELIC raised to 6.00% (Prev. 5.50%)

COPOM minutes (Tuesday) and the Quarterly Inflation Report (Thursday) are due this week.


USD/BRL closed lower at 5.4908 Friday, but stopped short of a close below the 50-dma at 5.4727. This morning has seen USD/BRL open just above 5.50, with Friday's highs of 5.5525 the first target.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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