Commerzbank FX analysts Norman Liebke and Michael Pfister see the Brazilian Real supported by the Brazilian Central Bank’s hawkish stance and still-elevated real interest rates. The analysts note that election risks could weigh on the currency in the near term, but they expect renewed gains afterward. They highlight that the central bank’s commitment to fighting inflation and the high level of real rates provide a supportive backdrop for the Real. The view comes as markets assess the outlook for Brazilian monetary policy and political developments.
Commerzbank sees BRL supported by hawkish central bank and high real rates, implying BRL strengthens vs USD.
