# EM FX focused now on Brazil - Danske Bank - Forex Crunch

> The Brazilian real fell to a 2.5-year low against the dollar, with USD/BRL moving above 4.00. Danske Bank analyst Jens Pedersen linked the move to worries that reform-oriented candidates have weak support ahead of the presidential election.

- Date: 2018-08-22 · published 2018-08-22T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/12514-em-fx-focused-now-on-brazil-danske-bank-forex-crunch
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A sharply weaker real raises the cost of imported feed ingredients for Brazilian buyers and can pull in more Brazilian soybean and corn exports, supporting dollar-denominated grain prices. Analysts also flagged a possible central bank rate hike to defend the currency.

## Read by commodity

- USDBRL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2018-08-23 | 5 | +4.9% | 2.9 | Election-related worries about weak support for reform-oriented candidates drove the real to a 2.5-year low in the window, a direct sentiment/risk-premium driver. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2019-04-23 | [Brazil: Economy under pressure? - TDS - Forex Crunch](https://feedsoft.ai/events/59783-brazil-economy-under-pressure-tds-forex-crunch.md) | +0.2% | +4.7% |
| USDBRL | 2018-07-18 | [Brazil: Presidential race about to start - Rabobank - Forex Crunch](https://feedsoft.ai/events/64234-brazil-presidential-race-about-to-start-rabobank-forex-crunch.md) | -3.2% | +0.6% |
| USDBRL | 2019-09-30 | [USD/BRL: Year end forecast raised by 10-cents to 3.90 - Rabobank - Forex Crunch](https://feedsoft.ai/events/57288-usd-brl-year-end-forecast-raised-by-10-cents-to-3-90-rabobank-forex-crunch.md) | -2.3% | -4.3% |
| USDBRL | 2023-10-11 | [Brazil: How higher for how longer? – Rabobank — Octa](https://feedsoft.ai/events/33833-brazil-how-higher-for-how-longer-rabobank-octa.md) | -1.0% | -3.9% |
| USDBRL | 2020-03-04 | [Brazil central bank to intervene in FX swaps market on Thursday](https://feedsoft.ai/events/54310-brazil-central-bank-to-intervene-in-fx-swaps-market-on-thursday.md) | +4.1% | +15.5% |

## Sources

- forexcrunch.com: https://www.forexcrunch.com/blog/2018/08/22/em-fx-focused-now-on-brazil-danske-bank/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.