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USDBRL Rejects 5.00 Once More, Focus On Friday's IPCA Print

BRAZIL
  • USDBRL had a strong reversal on Friday after once again probing below 5.00 very briefly. The continued broad greenback strength was powerful enough to negate the technical break and fresh shorts were squeezed throughout the session.
  • The focus this week will be on the IPCA mid-month inflation, due on Friday. The annual figure is expected to increase to 8.16% and any further upward surprises will likely prompt investors to add to bets for a larger than 75 basis point hike from the Copom in August.
  • Bill that paves the way for privatization of Brazilian power utility Eletrobras returns to lower house for a new vote after approved with changes in Senate. Bill loses validity if not approved by Congress by June 22.
  • Central bank releases Focus survey, with analyst's estimates for GDP, FX, inflation and Selic rate, on its website at 8:25am.

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