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USDBRL Edging Back Toward Psychological 5.00 Level

BRAZIL
  • In line with the strength in USDMXN overnight and emerging market FX weakness on Tuesday, USDBRL has opened in positive territory and is closing the gap with the key bull trigger at 5.0016, the Aug 18th high. Clearance of this level would open 5.1277, the May 31st high.
  • Brazil treasury brought forward to Wednesday the auction of fixed income bonds as markets are closed tomorrow for a holiday; size offered and amount sold of bonds maturing in 2024, 2025, 2027, 2029 and 2033 may be a potential driver in the swaps market.

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