HALISTER1: BRL Market Cautiously Bullish After Clinton Probe Ends: Analysts

BRL Market Cautiously Bullish After Clinton Probe Ends: Analysts

(Bloomberg) -- BRL currency and rates markets await further developments in U.S. election after recovering part of last week’s losses tied to concerns about Clinton’s weakening chances of winning, analysts say.
  • Brazil market is pricing a bigger chance of Clinton win after FBI decision, Luciano Rostagno, chief-strategist at Banco Mizuho do Brasil, says in a phone interview
    • Eventual polls indicating a Hillary election with wider margin may push BRL to strengthen more, breaching 3.20/USD, the current small gap between the two candidates shows the risk of a Trump win is “still real”
    • A Trump win would raise concerns for Latam countries on trade and immigration policies
  • BRL may show some further gains should the risk sentiment continue to improve; however the in short-term, investors should remain cautious before the results of the U.S. election, Arnaud Masset, market analyst at Swissquote Bank, says
  • Locally, investors continue to monitor Carwash probe, as Folha reports Odebrecht plea bargain is causing tension among government members
    • Even though it is not seen as short-term threat, the plea bargain may generate “political noise,” depending on the names cited, Rostagno says
  • Related story: What BRL traders should watch beyond U.S. presidential election
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Luciano Rostagno (Banco Mizuho do Brasil SA)
Arnaud Masset (Swissquote Group Holding SA)

Topics
Criminal Practice & Procedure

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