Brazil: A positive 2Q GDP surprise would fuel the real’s appreciation bias - ING

Brazil 2Q GDP would be worth keeping an eye on today as ING’s Gustavo Rangel notes that a positive surprise could help extend BRL appreciation as evidence of economic consolidation is crucial towards generating a more favourable scenario for Brazil's challenging fiscal dynamics.

Key Quotes

“While flat quarterly growth would confirm that the recession is certainly behind us, overall it might reinforce the scenario of a very gradual recovery, with political and fiscal uncertainties continuing to weigh on investment outlook. Look for limited $/BRL downside beyond 3.10 in 3Q17.”