# USD/BRL to extend the decline to 5.00 – Credit Suisse — Octa

> Credit Suisse says USD/BRL could fall as low as 5.00 in the near term on strong inflation data and a supportive external outlook. The bank remains cautious because of political risk and flow conditions. It expects a tactical pullback toward 5.30-5.35 to become attractive afterward.

- Date: 2020-12-09 · published 2020-12-09T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/49855-usd-brl-to-extend-the-decline-to-5-00-credit-suisse-octa
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A move lower in USD/BRL makes Brazilian grain and soy exports more expensive in dollar terms relative to local currency costs, which can weigh on export prices. It is a forecast, and the bank itself expects a later pullback.

## Read by commodity

- USDBRL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2021-08-04 | [USD/BRL: Hawkish BCB to provide further anchor to the real – Credit Suisse — Octa](https://feedsoft.ai/events/45761-usd-brl-hawkish-bcb-to-provide-further-anchor-to-the-real-credit-suisse-octa.md) | -0.8% | -1.8% |
| USDBRL | 2021-07-05 | [USD/BRL to end the year at 5.10 as the real shows its strength – MUFG — Octa](https://feedsoft.ai/events/9909-usd-brl-to-end-the-year-at-5-10-as-the-real-shows-its-strength-mufg-octa.md) | +3.0% | +1.6% |
| USDBRL | 2021-07-12 | [USD/BRL: Real should continue to find demand this summer – ING — Octa](https://feedsoft.ai/events/46263-usd-brl-real-should-continue-to-find-demand-this-summer-ing-octa.md) | -3.2% | -0.7% |
| USDBRL | 2017-08-25 | [USD/BRL heading towards 3.00 in the next months – Danske Bank — Octa](https://feedsoft.ai/events/69656-usd-brl-heading-towards-3-00-in-the-next-months-danske-bank-octa.md) | +0.1% | -0.5% |
| USDBRL | 2017-01-11 | [Brazil: Dissecting the BRL's outperformance - Rabobank — Octa](https://feedsoft.ai/events/73181-brazil-dissecting-the-brl-s-outperformance-rabobank-octa.md) | +0.8% | -2.1% |

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/868514/

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