# Brazil: We expect a near-term rally in the BRL - Danske Bank — Octa

> Danske Bank raised its near-term Brazilian real forecasts after the lower house of Congress rejected a motion to put President Temer on trial, with USD/BRL now seen at 3.05 in one month and 3.00 in three months. The bank cites the 4% BRL gain over the past 30 days and expected portfolio inflows, while flagging a more hawkish Fed as the main upside risk to its forecast.

- Date: 2017-08-07 · published 2017-08-07T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/69657-brazil-we-expect-a-near-term-rally-in-the-brl-danske-bank-octa
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A stronger real reduces the dollar-based competitiveness of Brazilian soy and corn exports, which can slightly support US feed grain and meal prices. The effect is limited because this is a currency forecast tied to politics rather than a crop or trade shock.

## 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 | 2016-12-19 | [Brazil: upside prospects for BRL, but only for half year - Danske Bank — Octa](https://feedsoft.ai/events/73677-brazil-upside-prospects-for-brl-but-only-for-half-year-danske-bank-octa.md) | -3.5% | -4.8% |
| 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% |
| USDBRL | 2019-08-27 | [Brazil central bank to continue FX intervention on Wednesday as real nears record low - The Business Times](https://feedsoft.ai/events/57788-brazil-central-bank-to-continue-fx-intervention-on-wednesday-as-real-nears.md) | +0.5% | +0.5% |

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/475367/

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