The one-day interbank deposit futures rates (DI rates) in Brazil opened lower Friday, tracking the locally traded U.S. dollar, which was trading lower after the release of preliminary data on the United States Gross Domestic Product (GDP), and the increase recorded by Geraldo Alckmin in a voting intention survey for October’s presidential election in Brazil.
According to Renascen?a Corretora’s economists, the curve responds to a change in the electoral scenario since an XP Investimentos-Ipespe survey showed pro-market Alckmin reaching for the first time 10% of voting intention, tied with Ciro Gomes (PDT), in two of the four scenarios surveyed.
Meanwhile, preliminary data showed that U.S. GDP grew by 4.1% in the second quarter, up from 2.2% in the previous quarter, but below the expectation of +4.4%. “The inflation there still shows only a moderate evolution, which imposes limits on U.S. dollar pressures, even if the currency should remain strengthened in line with robust activity,” said Tendancias economist Silvio Campos.
“The trend is for the rates to keep on tracking the greenback, especially on the long curve,” said Guide Investimentos’ economist Ignacio Crespo.
Near the middle of the session, the January 2019 DI contract rate was at 6.615%, from 6.625% in the previous settlement, while the January 2020 DI rate was at 7.86%, from 7.91%. The January 2021 DI contract rate was at 8.87%, from 8.94%.