May 29, 2024 12:13 GMT
USDBRL Tilts Firmer on Weak Fiscal Data, Stronger USD
BRAZIL
- A firmer greenback and the weaker-than-expected budget balance data is weighing on the Brazilian real at the open, with USDBRL climbing roughly a quarter of a percent to 5.1750. A solid improvement for April’s unemployment rate has been unable to offset the initial BRL weakness.
- We noted yesterday that the recent pull lower for USDBRL, since Apr 16, appears to have been a correction. The pair is once again trading above its 50-day EMA and price action sees a narrowing of the gap towards key short-term resistance, which has been defined at 5.1969, the Apr 30 high. Clearance of this hurdle would be a bullish technical development.
- Formal job creation and Federal debt total figures are scheduled for release later today and will be the final datapoints this week. Local markets will be closed on Thursday for Corpus Christi Day.
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