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The GBP/BRL cross reached a five-month high of 5.1844 on Monday, meaning the real weakened against sterling. The move followed the arrest of former president Michel Temer on corruption charges and a smaller-than-expected cut to the military budget, which raised doubts about pension reform.
Gains eased slightly into Tuesday.
The move reflects a weaker real driven by political uncertainty, which can make Brazilian agricultural exports more competitive. The effect on feed commodity prices is modest because the report is a cross-rate update.
exchangerates.org.ukElaine HoustenMar 25, 2019After 301 past bullish macro events, Brazilian Real (BRL per USD) moved a median +0.4% over 5 sessions (57% higher; middle half -1.2% to +1.7%), and +1.0% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
