BRL remains under pressure on political jitters – Danske Bank

Chief Analyst at Danske Bank Jakob Christensen gives his views on the Brazilian currency following the recent political developments.

Key Quotes

“In emerging markets, the BRL has recovered some of the ground after the plunge last week following corruption allegations against President Michel Temer”.

“The Supreme Court is expected to rule on Temer’s request to suspend the investigations tomorrow. Yesterday, two of the government’s coalition members said that they were continuing to support the government for now”.

“If the pressure continuesto mount on Temer to resign, we think that there is clear upside to our USD/BRL forecast of 3.30 by end-June”.