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Vaccinations Commence

BRAZIL

Brazil has authorised its States to commence vaccinations today after approving the Oxford/AstraZeneca and Chinese-made Sinovac coronavirus vaccines. This comes as welcome news amid the crisis unfolding in Manaus.


*Brazilian swap rates had a move on Friday following comments from the speaker requesting an emergency committee meeting regarding the crisis developing in Manaus. Fears that emergency measures could intensify the pressure on the spending cap and hence increase the likelihood of rate hikes in the near future saw the front-end move ~10 basis points higher and the curve bear flatten.


*The Real may come under pressure to start the session given the slightly stronger USD and domestic headwinds in play. 5.52 continues to be strong resistance in the pair.


*Wednesday we will have the Brazil Central Bank meeting where analysts seem in consensus the COPOM will hold the Selic Rate at 2.00% but have the potential to remove the forward guidance from their statement after their more slightly hawkish shift at the previous meeting. A full preview and sell-side review will be published tomorrow.

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