Halister News

(Bloomberg) -- BRL gain reflects positive sentiment toward some EM FX, metals and stock prices, Georgette Boele, strategist at ABN Amro Bank, says in e-mailed response to questions.

• Geopolitical tension weighed on EUR but BRL is far removed
  • Locally, while Carwash probe continues, the market reaction is diminishing
  • Markets already expect the worst and may not react to anything other than a major shock -- “more than we have seen so far, which is hard to imagine”
  • If the risk that president Temer’s administration can’t continue increase, that would be BRL negative
  • Economy likely to improve over time, supporting BRL, Boele says
• “It is difficult to make a statement on the political situation in Brazil at the moment, apart from the fact that politics will probably have a lower impact on the BRL going forward”
  • Expects BRL at 3.7/USD at end of 2017 -- given strong US GDP growth and higher real rates in US -- and 3.2 at end of 2018