USD/BRL declines near the 200-day SMA, eyes on Argentinian elections

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• USD/BRL saw more than 0.30% losses and fell to monthly lows.
• Argentinian left-wing Sergio Massa was unexpectedly the highest-voted candidate in the first-round elections from Argentina on Sunday.
• Brazil will release Mid-month inflation data from October on Thursday.
• Investors await high-tier economic data from the US to continue modelling their expectations on the Fed.

On Monday, the USD/BRL fell to its lowest level since early September, towards the 5.010 area, down by more than 0.30%. The broad-based USD weakness in FX markets can explain this trajectory and focus is now set on high-tier economic activity figures from the US released this week.