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USDBRL Opening Moderately Higher, In Line With Firmer USD

BRAZIL
  • The slightly firmer greenback this week placing some moderate upward pressure on USDBRL (high of 5.1877) at the open following the Carnival & Ash Wednesday holidays.
  • As noted, the BCB will release the latest Focus survey with analyst’s estimates for GDP, FX, inflation and Selic interest rate, on its website at 2pm Brasilia time (1700GMT).
  • In the previous survey, economists raised 2023 IPCA official inflation index forecast to 5.79%.
  • Focus then turns to Friday’s mid-month IPCA inflation data where the annual headline rate is expected to decrease to 5.60%.

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