BRL is opening marginally stronger by 0.2% at 3.4751 after early test to 3.49. Appointed Fin Min Meirelles has came early and gave the right tone by suggesting tough measures are needed to correct imbalances and that the new BCB president will be announced as early as Monday. His diagnosis is accepted by the market but we have yet to hear the actual measures. No BCB intervention today.
DI curve is correcting upwards along after yesterday drop. Jan 17 is up 2bps to 13.59% while Jan 21 is up 5bps to 12.18%.
Earlier, we saw March Proxy GDP coming below expectations at -0.36%m/m, -6.31%y/y.
In the US, we expect Apr retail sales to rise by 1.0%, with gains of 0.5% ex auto and 0.4% ex auto and gasoline. Apr PPI should increase by 0.2%, 0.1% ex food and energy. We expect the preliminary May Michigan CSI to bounce to 92.0 from 89.0, and a 0.1% increase in Mar business inventories. Non-voting Fed moderate Williams will speak on Friday.
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