Brazil: Focus on BCB minutes – TDS

Analysts at TDS point out that in the Brazil, the BCB minutes for the surprisingly dovish March policy meeting will be released and will be a key release for today’s session.

Key Quotes

“The BCB has pushed the DI-curve to price in a high risk (70%) of a further 25bp cut at the May policy meeting. We agree with this risk considering the BCB's abrupt about-face following the February indication that the central bank would remain on hold, barring a significant change to the baseline outlook or risks. Given little has changed on inflation or growth since then, it will be interesting to get colour on what exactly drove this unexpected dovishness.”

“US: Consumer confidence for March is the lone economic release and the market consensus is for the index to hold near multiyear highs at 131.0. Atlanta Fed President Bostic (2018 voter) will speak at an Economic Conference at 11:00 ET.”