Brazilian Real: Election surprise supports BRL against US Dollar – ING

ING’s Chris Turner says Brazilian assets are set to rally after Sunday’s presidential vote, where Flavio Bolsonaro secured 47% versus President Lula’s 45%. He expects markets to assume remaining votes lean Bolsonaro, sees currency and bonds benefiting from his fiscal austerity and deregulation agenda, and projects USD/BRL opening near 5.10, with a return to 4.90 seen as too aggressive.