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Volatile Tuesday Session For USDBRL, Desks Note Real Outflows

BRAZIL
  • A volatile round trip for the Real yesterday, following the release of the BCB minutes. Interpreted as dovish on the margin, USDBRL surged higher on the open from 5.22 to highs of 5.2813. The move was faded with what appears to be continued support for BRL on dips. New lows were made for the session, but Monday's 5.20 lows still remain intact.
  • Focus is on the March Economic Activity data due tomorrow where the monthly figure is expected to decline by 3.7%, however the annual reading is expected to jump to 5.5%.
  • Some desks reported evidence of first signs of outflows by off-shore clients, in direct contrast to most recent sentiment being heavily tilted towards BRL bullishness.

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