FXStreet (Delhi) – Research Team at Investec, suggests that while the markets remain quiet and subdued during the festive season, news emerged overnight that the Brazilian budget deficit has jumped to one of the highest levels on record as government finances came under increasing strain amid a deep recession. Key Quotes “The deficit rose to 19.6bn Reals from 11.5bn Reals in October as the government struggles to increase tax revenues as the economy continues to shrink. The nerves caused by the data could cause further jitters over other emerging market economies. However a rebound yesterday in commodity prices, notably oil and copper, helped to ease general concerns, at least for now.” “While we continue our look at some of the more peripheral FX related stories around the world we go to Saudi Arabia. News emerged yesterday that the government has announced a cut in public spending alongside rises in tax, fuel and energy prices. As a result the country’s main stock index fell 3% in the first fifteen minutes. While we don’t expect Saudi Arabia to become one of the poorer nations in the world anytime soon this move could be perceived as a first crack in the fortress caused by the current low oil price.” For more information, read our latest forex news.