Fiscal Target Reduction Sending BRL Lower

The Brazilian real will remain under pressure in the coming days following the Brazilian government's proposal to slash its 2015 and 2016 primary fiscal surplus targets, long a major measure of the country's fiscal health for analysts and investors. Indeed, the unit depreciated by 2.2% today, smashing through short-term support and we expect it will continue weakening towards its March low in the coming weeks ( see 'No Reprieve For Regional FX', July 10). Heading Back To March Low Brazil -...

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