# Brazil FX backed by good fiscal results in south hemisphere summer lull- Reuters poll – Financial Newsletter

> A Reuters poll of 21 foreign exchange strategists expects the Brazilian real to strengthen 1.4% to 5.62 per dollar by end-March from 5.70, supported by a surprisingly good fiscal performance. Investors remain concerned that the improvement may be temporary given fiscal loosening ahead of the October election.

- Date: 2022-01-07 · published 2022-01-07T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/43354-brazil-fx-backed-by-good-fiscal-results-in-south-hemisphere-summer-lull-reuters
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A forecast stronger real would lower the local cost of imported feed ingredients and could slightly firm dollar-denominated Brazilian commodity prices. The fiscal risk noted in the poll could reverse that view.

## Read by commodity

- USDBRL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2022-02-22 | [Brazil central bank chief says higher interest rates, positive fiscal are supporting FX \| Financial Newsletter](https://feedsoft.ai/events/42914-brazil-central-bank-chief-says-higher-interest-rates-positive-fiscal-are.md) | +0.7% | -3.4% |
| USDBRL | 2021-10-19 | [Brazil central bank intervenes in FX market rattled by new spending \| Financial Post](https://feedsoft.ai/events/44783-brazil-central-bank-intervenes-in-fx-market-rattled-by-new-spending-financial.md) | +1.4% | -0.4% |
| USDBRL | 2023-04-24 | [Brazil woos sceptical foreign investors with new fiscal plan \| Reuters](https://feedsoft.ai/events/36625-brazil-woos-sceptical-foreign-investors-with-new-fiscal-plan-reuters.md) | -0.9% | -1.3% |
| USDBRL | 2022-07-07 | [Brazil real to firm, but pre-election fiscal loosening seen as risk - Reuters poll](https://feedsoft.ai/events/40694-brazil-real-to-firm-but-pre-election-fiscal-loosening-seen-as-risk-reuters-poll.md) | -1.5% | -3.4% |
| USDBRL | 2021-05-27 | [Brazil real up; Most Latam FX pressured by rising U.S. bond yields \| Financial Post](https://feedsoft.ai/events/47312-brazil-real-up-most-latam-fx-pressured-by-rising-u-s-bond-yields-financial-post.md) | -4.3% | -7.3% |

## Sources

- financialnewsletter.com: https://financialnewsletter.com/brazil-fx-backed-by/

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