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USDBRL Gravitates Towards 5.01 Technical Level

BRAZIL
  • Continued local optimism saw BRL firm around 1.3% against the greenback on Wednesday. The recent weakness for USDBRL continues to signal the potential for a move towards 5.0108, the Aug 29/30 low and a key support.
  • Today, Petrobras’s board holds meeting with the appointment of Jean Paul Prates as the new CEO as one of its items; Prates’s nomination was approved by company’s committee, according to local newspapers.
  • Data/supply due today:
    • 1230GMT/0730ET: Dec. Foreign Direct Investment, est. $5.55b, prior $8.34b
    • 1230GMT/0730ET: Dec. Current Account Balance, est. -$6.4b, prior -$60m
    • Treasury discloses public debt monthly report and annual financing plan for 2023 at 1730GMT/1230ET followed by a press conference 30 minutes later.
    • Treasury to auction fixed-rate LTN local notes due 2023, 2025 and 2026, and fixed-rate NTN-F local notes due 2029 and 2033.

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