USD/BRL: Still see it a 5.30 by year-end – Rabobank

The USD/BRL is falling on Monday after posting last Friday, the highest daily close since early August. Analysts at Rabobank see the USD/BRL pair at 5.30 by the end of the year. 

Key Quotes: 

“We still believe the Fed will remain hawkish, the USD will remain holding its safe haven status, and domestically the traditional electoral cycle will weigh on local assets. We still see the USDBRL at 5.30 by end-22.”

“Coming up next, all eyes are on the Copom (Wed). The decision comes right after the FOMC’s one, and we foresee the Brazilian monetary authority announcing a hawkish pause (0bp) to the hiking cycle that brought the Selic rate from 2.00% in February 2021 to 13.75% in the August 2022 meeting.”