- Analytics
- News and Tools
- Market News
- USD/BRL set to extend its downmove towards the 5.35 mark – Credit Suisse
USD/BRL set to extend its downmove towards the 5.35 mark – Credit Suisse
Economists at Credit Suisse now see scope for the Brazilian real to strengthen as far as 5.35 against the US dollar in the near-term, but see turning structurally bullish as premature.
Medium-term, a return to Q1 highs in USD/BRL remains unlikely
“The political risk picture has improved in Brazil, and inflation breakevens have stabilized: we see this as tactically helpful for BRL, consistent with USD/BRL trading as low as 5.35 in the near-term.”
“We however see turning structurally constructive on BRL as premature, as the political picture is likely to heat up again in two weeks and the turn in inflation is still tentative.”
“Medium-term, we maintain 5.80 as the top end of the target range, but the evidence of a large amount of risk premium priced into local assets that emerged from recent price action overall reinforces the idea that the bar for a return to Q1 highs, even under adverse political outcomes, is very high.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
