Forex - Brazil Flows: BRL recovers 0.3% with mildly supportive global backdrop


 12:21 (GMT) 18 Aug

  [Forex Flows]

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Brazil Flows: BRL recovers 0.3% with mildly supportive global backdrop (0100-RRZQ-C01)

BRL is recovering from yesterday sell off in early trading, gaining 0.3% to trade at 3.166, despite mixed global backdrop. Domestically the market is still concerned that the govt. still needs congress aid to meet the new fiscal target and that may reduce room for pension reform. Di rates are falling along with BRL rebound, with Jan 18 down 2bp to 8.11% and Jan 21 DI is down 3bp to 9.49%. Market is pricing in 89bp rate cut for September meeting.

Earlier data release was on expectations with 2nd Preview of IGP-M at 0.03%m/m. Only release in the US is Preliminary August Michigan CSI


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