HALISTER1: BRL Falls With EM Peers on Trump Uncertainty, Analysts Say

BRL Falls With EM Peers on Trump Uncertainty, Analysts Say

(Bloomberg) -- BRL and other emerging markets drop, reflecting uncertainties over the impact of U.S. President Trump’s policies on inflation and global trade, analysts say.
  • Rise in U.S. yields is making investors in EMFX nervous, Georgette Boele, currency & metals strategist at ABN Amro, says in a phone interview
    • Higher yields reflect faster inflation expectations following the Trump victory
    • Uncertainty about global trade has increased
    • Markets waiting on more details from Trump and what people he will put in what position
    • Boele expects BRL to weaken in the coming quarters
  • “The external uncertainty is still too large regarding Trump’s position, especially when it comes to the economy,” Mauricio Oreng, a senior strategist at Rabobank, says
    • “If he manages to accelerate the economy and combat disinflation via fiscal adjustment, the dollar will strengthen against emerging markets through a faster pace of Fed rates”
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Georgette Boele (ABN AMRO Group NV)
Mauricio Oreng (Banco Rabobank International Brasil SA)

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