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Volatile Wednesday For BRL Likely Tied To Month-End Dynamics

BRAZIL
  • Volatile session for USDBRL yesterday which some trading desks have largely attributed to month-end dynamics. Additionally, the bid in the dollar took the pair back above 5.00 for the first time since closing below on June 22nd. Some late demand for the Real, however, saw the pair end close to unchanged for the day.
    • Ongoing investigations relating to the Covid probe has appeared to be growing in scope, implicating several officials for misconduct and acting as a lingering political anxiety for market participants.
  • 1430BST/0900ET - May Formal Job Creation Total, est. 150,000, prior 120,935
  • 1900BST/1400ET - June Trade Balance Monthly, est. $11b, prior $9.29b
  • Separately, Treasury auctions fixed-rate LTN local notes due 2022, 2023 and 2025; fixed-rate NTN-F local notes due 2027 and 2031. Selic-linked LFT notes due 2023 and 2027.

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