# BRL: Can flows pick up the baton from carry? – Deutsche Bank — Octa

> Deutsche Bank strategist Sebastian A. Brown says the Brazilian real's recent strength after successful government auctions of exploration rights and energy concessions is not a one-off. He expects growth-driven capital and FDI inflows to replace carry trade as the main support for the BRL, and recommends being long BRL/CLP, with USD/BRL possibly testing 3.0 if the euro appreciates.

- Date: 2017-10-17 · published 2017-10-17T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/68651-brl-can-flows-pick-up-the-baton-from-carry-deutsche-bank-octa
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A firmer real makes Brazilian exports such as soybeans, meal and corn cheaper in dollar terms, which can weigh on Brazilian-origin feed prices, while a weaker dollar-to-real move supports Brazilian farmer selling.

## Read by commodity

- USDBRL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2017-09-29 | [Brazil: Mid- and long-term prospects for the BRL look brisker - Danske Bank — Octa](https://feedsoft.ai/events/69155-brazil-mid-and-long-term-prospects-for-the-brl-look-brisker-danske-bank-octa.md) | -1.6% | +2.7% |
| 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 | 2017-08-07 | [Brazil: We expect a near-term rally in the BRL - Danske Bank — Octa](https://feedsoft.ai/events/69657-brazil-we-expect-a-near-term-rally-in-the-brl-danske-bank-octa.md) | +1.5% | +0.4% |
| USDBRL | 2020-12-09 | [USD/BRL to extend the decline to 5.00 – Credit Suisse — Octa](https://feedsoft.ai/events/49855-usd-brl-to-extend-the-decline-to-5-00-credit-suisse-octa.md) | +0.6% | +6.0% |
| 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/500676/

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