4 Sep 2015
Bearish tone surrounds the Brazilian real – BAML
FXStreet (Edinburgh) - In the view of analysts at BAML, the outlook for the Brazilian currency leans on the negative side.
Key Quotes
“The ongoing BRL depreciation could help activity in the medium/long term”.
“We recently revised our FX forecast eop to 3.80 for 2015 (from 3.30 previously) and to 4.10 for 2016 (from 3.60)”.
“The weaker BRL should help external accounts and economic activity, boosting exports and encouraging import substitution. Yet it could take more than a year for the economy to feel these effects”.
“We estimated the main driving factors for the Brazilian currency and found that commodity prices are important drivers for the BRL”.
“We stay bearish BRL since commodity prices are still plunging and domestic conditions are deteriorating with the economic recession”.
Key Quotes
“The ongoing BRL depreciation could help activity in the medium/long term”.
“We recently revised our FX forecast eop to 3.80 for 2015 (from 3.30 previously) and to 4.10 for 2016 (from 3.60)”.
“The weaker BRL should help external accounts and economic activity, boosting exports and encouraging import substitution. Yet it could take more than a year for the economy to feel these effects”.
“We estimated the main driving factors for the Brazilian currency and found that commodity prices are important drivers for the BRL”.
“We stay bearish BRL since commodity prices are still plunging and domestic conditions are deteriorating with the economic recession”.