Published at 12:47 (GMT) 06 Jul
BRL losing ground along with the global market after US labor data disappointed and European yields continued to wide. BRL is trading 0.6% weaker at 2.03 but well within the 2.00/2.05 range deemed safe for BCB to stay out of the market. Earlier data on IPCA came below expectations and although the influence of the temporary reduction in IPI taxes should give the market some hesitation on opening the bubbly, Di rates are down as the market is starting to think that the BCB could go as low as 7%. Jan 13 is down 3bps to 7.59% and Jan 14 is down 4bps to 7.87%. We are keeping our 2.00/2.05 for the day.