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Wednesday Inflation Data In Focus, Consumer Confidence Falls

BRAZIL
  • Despite the significant bounce off the lows, renewed selling in equities to kickstart Tuesday is weighing on BRL at the open. USDBRL is half a percent higher, in line with USDMXN gains and a stronger dollar.
  • Key data comes tomorrow in the form of mid-month IPCA inflation figures, with the annual headline rat expected to fall to 10.05% from 10.42% previously. The data precedes the fed decision which will be the main driver for rates and the greenback approaching Wednesday’s close.
  • Potential driver for swap rates on Tuesday - Treasury auctions Selic-linked LFT notes due 2025 and 2028 and inflation-linked NTN-B local notes due 2027, 2035 and 2060. The volume of notes will be released at 10:30am local.
  • Out this morning, Brazil Jan. Consumer Confidence fell to 74.1 from 75.5 in December.

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