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USDBRL Gravitates Towards 5.10 Support, Bolsonaro Returns

BRAZIL
  • USDBRL ended Wednesday’s session in close proximity of key support at 5.1012, the Mar 8 low. Further strength across equity markets and broad dollar weakness adds to the likelihood of this level being tested. The pair recently failed to hold on to its recent high of 5.3409, on Mar 24 and price is now trading below both the 20- and 50-day EMAs.
  • In local news, former President Jair Bolsonaro is heading back to Brazil after more than three months in the US. In an interview to CNN on Wednesday, Bolsonaro downplayed his potential role in Brazil’s current political scenario saying he “will not lead opposition”; instead he will be part of a party as “an experienced politician”.

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