Brazilian roller coaster is definitely back in the short run - Rabobank
|Michael Every, Senior Asia-Pacific Strategist at Rabobank, notes that Brazilian President Temer has refused to resign despite a new corruption scandal, mean that ”the only certainty is that the Brazilian roller coaster is definitely back on in the short run,” in the words of our own Maurico Oreng-is-the-new-black.
Key Quotes
“Indeed, his call here that in a simulated scenario of mild political stress USD/BRL could go to near 3.50, and in greater stress towards 4.45 seems entirely realistic when one considers that yesterday BRL already spiked from 3.10 to 3.37(!) while Brazilian equities crashed 8.8%. In short, there are now two political scandals in the Americas that will keep us up at night.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.