- Yesterday’s strong USDBRL gains are a positive development signalling the end of the recent corrective pullback. Resistance at 5.0548, the Mar 19 high has recently been breached highlighting a resumption of the uptrend that started Dec 27. Retail Sales data highlights the docket at 1300BST/0800ET:
- Feb. Retail Sales YoY, est. 3.7%, prior 4.1%
- Feb. Retail Sales MoM, est. -1.5%, prior 2.5%
- Feb. Retail Sales Broad MoM, est. -0.8%, prior 2.4%
- Feb. Retail Sales Broad YoY, est. 6.3%, prior 6.8%
- President Lula holds a meeting in Brasilia with VP Geraldo Alckmin, Chief of Staff Rui Costa, Finance Minister Fernando Haddad, Institutional Relations Minister Alexandre Padilha and Tarciana Medeiros, CEO at Banco do Brasil. Separately, the treasury will auction fixed-rate LTN local notes due 2025, 2026, 2028 and 2030; fixed-rate NTN-F local notes due 2031 and 2035.
- In other news, Elon Musk on Wednesday said X received a query from U.S. lawmakers on actions the social media platform had undertaken in violation of Brazilian law and claimed the law was being used to target accounts of sitting lawmakers in the country. Musk has called for Surpreme Court Judge de Moraes's removal and has goaded him online in recent days, referring to the judge as "Brazil's Darth Vader" and likening his powers to those of a "brutal dictator."
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