Research Team at BBH, suggests that Brazil’s PMDB holds a national board meeting today to decide if it will formally remain coalition partners with Rousseff’s PT. Key Quotes “Many expect the PMDB to be split on the matter, but with the majority seen opting to end the coalition. Either way, we expect a long and messy impeachment process that will take valuable time away from focusing on economic policy. In that regard, Brazil also reports central government budget data Tuesday, where a primary deficit of -BRL13.6 bln is expected. It then reports consolidated budget data Wednesday, where a primary deficit of -BRL10.4 bln is expected. Regardless of the longer-term political outlook, we think Brazil’s sovereign ratings will remain under downward pressure.” For more information, read our latest forex news.