18 Nov 2015
Brazil: Political victories of the government boost BRL – BBH
FXStreet (Córdoba) - Analysts from Brown Brothers Harriman noted that the Dilma Rousseff administration scored political victories that had an impact on price.
Key Quotes:
“Brazil’s government scored an important set of political victories yesterday, many of which impact the fiscal accounts. It’s too soon to say that the tide has decidedly changed, but there are some positive signs, and asset prices are responding accordingly.”
“President Dilma reinforced the view that Finance Minister Levy will stay, at least for now. For us, the emphasis is in the last part. It’s hard to imagine that he will still be there by the end of 2016. The trial balloon of former central bank president Meirelles was sent out and was well received by the markets.”
“And lastly, the impeachment story seems to be losing strength, at least for now.”
“The real is outperforming on the day at BRL 3.7750 against the dollar, but is not yet breaking any new ground. Relatively speaking, however, BRL is the top performing EM currency this week, up 2.6% since last Friday, and is one of only two (along with TRY) that is up against the dollar. Similarly, the Bovespa has outperformed most EM indices over the last few sessions.”
Key Quotes:
“Brazil’s government scored an important set of political victories yesterday, many of which impact the fiscal accounts. It’s too soon to say that the tide has decidedly changed, but there are some positive signs, and asset prices are responding accordingly.”
“President Dilma reinforced the view that Finance Minister Levy will stay, at least for now. For us, the emphasis is in the last part. It’s hard to imagine that he will still be there by the end of 2016. The trial balloon of former central bank president Meirelles was sent out and was well received by the markets.”
“And lastly, the impeachment story seems to be losing strength, at least for now.”
“The real is outperforming on the day at BRL 3.7750 against the dollar, but is not yet breaking any new ground. Relatively speaking, however, BRL is the top performing EM currency this week, up 2.6% since last Friday, and is one of only two (along with TRY) that is up against the dollar. Similarly, the Bovespa has outperformed most EM indices over the last few sessions.”