Published at 12:38 (GMT) 30 Sep

BRL

BRL opened strong and accelerated gains following the release of US Q2 final GDP data (which was revised upward). BRL reflects the positive response, as Bovespa futures extended gains alongside with positive US equity futures. A weak USD and higher commodity prices also provide further fodder to the BRL rally. BRL currently trades at morning highs, up 0.77% to 1.7745, leading strong Latam FX higher. While BRL gains are consistent with the positive global backdrop, we would remain cautious, given the BRL's outperformance relative to the rest of Latam FX and the fact that Ptax settlement today could contribute to additional volatility. We would expect BRL to maintain bias on strengthening: range at 1.77/79