USD/BRL to test the 30 Aug lows around 5.01 on a clear victory by Bolsonaro – Credit Suisse
26.10.2022, 06:50

USD/BRL to test the 30 Aug lows around 5.01 on a clear victory by Bolsonaro – Credit Suisse

Economists at Credit Suisse restate their 5.00-5.50 USD/BRL target range ahead of the final round of presidential elections on 30 October and preview FX implications of different political outcomes.

A Lula victory can produce some degree of local investor disappointment

“A clear victory by President Bolsonaro is likely to be the most constructive for BRL, consistent with a rapid re-test of the 30 Aug lows in USD/BRL around 5.01.” 

“We suspect that any recently re-emerged fears of postelection turbulence would likely be quickly vanquished in the event of a Bolsonaro victory, adding reasons for BRL strength to local investors’ well-documented preference for the incumbent over the opposition candidate.”

“While a Lula victory can produce some degree of local investor disappointment, we also remain of the view that any ensuing rallies in USD/BRL towards the top end of our 5.00-5.50 target range will rapidly attract sellers – as long as the pre-vote promises by Lula about picking an ‘orthodox’ finance minister are realized.”

“We do not have a strong reason to expect a significantly different cabinet choice in the event of a Lula victory, but if this widely held assumption were to falter, the risk of a deeper correction in BRL past 5.50 would increase sharply.”

 

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Izvršenje trgovinskih operacija sa finansijskim instrumentima upotrebom marginalne trgovine pruža velike mogućnosti i omogućava investitorima ostvarivanje visokih prihoda. Međutim, takav vid trgovine povezan je sa potencijalno visokim nivoom rizika od gubitka sredstava. Проведение торговых операций на финанcовых рынках c маржинальными финанcовыми инcтрументами открывает широкие возможноcти, и позволяет инвеcторам, готовым пойти на риcк, получать выcокую прибыль, но при этом неcет в cебе потенциально выcокий уровень риcка получения убытков. Iz tog razloga je pre započinjanja trgovine potrebno odlučiti o izboru odgovarajuće investicione strategije, uzimajući u obzir raspoložive resurse.

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