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Brazilian real following domestic events

The real outperformed regional LatAm FX appreciating around 1.7% vs. the USD to USD-BRL 3.10 on Thursday. Domestic forces continue dictating the BRL behaviour with this currency actually appreciating almost 1.2% to the USD so far in the week and bucking the trend of COP and MXN that have been following global FX conditions, notes Commerzbank. 

Industrial production for May (released yesterday) surprised markets to the upside posting a 0.6% MoM advance when markets were expecting a -0.4% MoM decline, further boosting the sentiment throughout the day, says Commerzbank. 

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