Brazilian Real: Election surprise supports BRL against US Dollar – ING
ING’s Chris Turner says Brazilian assets are set to rally after Sunday’s presidential vote, where Flavio Bolsonaro secured 47% versus President Lula’s 45%. He expects markets to assume remaining votes lean Bolsonaro, sees currency and bonds benefiting from his fiscal austerity and deregulation agenda, and projects USD/BRL opening near 5.10, with a return to 4.90 seen as too aggressive.
Brown Brothers Harriman’s Elias Haddad predicts that the Brazilian Real (BRL) and local assets will open higher following Flávio Bolsonaro's strong performance in the presidential election's first round. Bolsonaro, the right-wing Senator from the Liberal Party (PL), secured approximately 47% of the vote compared to 45% for his leftist opponent, incumbent President Luiz Inácio Lula da Silva of the Workers' Party (PT).
This outcome, which defied the narrow lead held by most polls, has bolstered Bolsonaro's confidence heading into the October 25 runoff. Bolsonaro's proposals for accelerated fiscal repair and reduced taxes are expected to further strengthen the positive outlook for the BRL, already supported by Brazil's attractive carry and strategic exposure to commodities in energy, AI, and defense sectors.
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- Brazilian Real: Election surprise supports BRL – BBH fxstreet.com