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USDBRL Eyes 2021 Lows at 5.1210 Following Strong Growth Data

BRAZIL
  • Further upgrades to Brazilian 2021 GDP overnight following yesterday's strong set of figures:
    • BNP Paribas increases Brazil 2021 GDP est. to 5.5% from 4.5%
    • Credit Suisse increases Brazil 2021 GDP est. to 4.9% from 4%
  • USDBRL sharply lower through 5.20 support yesterday and the Real consolidated it's gains throughout the session. The stronger dollar index may put pressure on BRL at the open, however supply at 5.20 in USDBRL would be expected following the technical break. Next level in focus is the year's lows at 5.1210 before major pivot support just ahead of 5.00.
  • Treasury auctions fixed-rate LTN local notes due 2022, 2023 and 2024; fixed-rate NTN-F local notes due 2027 and 2031; and Selic-linked LFT notes due 2022 and 2027
  • Brazil Industrial Production due 13000BST/0800ET.

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