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USDBRL Strengthens Amid Risk Selloff, Unemployment Rate Drops

BRAZIL
  • The Brazilian real is set to weaken amid negative sentiment toward risk assets in global markets. Brazil’s Senate is expected to vote on a bill that will allow the government to increase spending ahead of October’s presidential election.
    • Month end dynamics are in play for the last trading session of the semester, potentially bringing added volatility to the currency, as traders dispute on where the fix will be set.
    • Brazil’s fixing, known as Ptax, is calculated by the central bank, which takes an average of prices provided by dealers at four different times of the day.
  • Estado reported that government is studying a way to fast track the financial aid bill in the Lower House as there’s a risk of it not being approved before the Congress recess that starts on July 17.
  • Just released: Brazil May National Unemployment Rate Falls to 9.8%; Est. 10.2% - Drops Most on Record (BBG)

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