# USD/BRL: Political headwinds facing the real - CIBC - Forex Crunch

> USD/BRL continued rising toward 6.0 after a Supreme Court investigation into President Bolsonaro and his family led to the resignation of the federal police chief and Justice Minister Sergio Moro. CIBC revised its Selic rate forecast to 2.0%-2.25% by end-2020 and its Q2 USD/BRL forecast to 5.50. The bank expects political tensions and a dovish central bank to weigh on the real.

- Date: 2020-05-25 · published 2020-05-25T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/7444-usd-brl-political-headwinds-facing-the-real-cibc-forex-crunch
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Political pressure and dovish rate expectations weaken the real, which raises the dollar value of Brazilian exports and can soften Brazilian soybean and meal offers on world markets.

## Read by commodity

- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2024-08-30 | [Political headwinds continue to drive LatAm FX uncertainty - Euromoney](https://feedsoft.ai/events/29019-political-headwinds-continue-to-drive-latam-fx-uncertainty-euromoney.md) | -0.8% | -3.6% |
| USDBRL | 2019-09-30 | [USD/BRL: Year end forecast raised by 10-cents to 3.90 - Rabobank - Forex Crunch](https://feedsoft.ai/events/57288-usd-brl-year-end-forecast-raised-by-10-cents-to-3-90-rabobank-forex-crunch.md) | -2.3% | -4.3% |
| USDBRL | 2019-04-23 | [Brazil: Economy under pressure? - TDS - Forex Crunch](https://feedsoft.ai/events/59783-brazil-economy-under-pressure-tds-forex-crunch.md) | +0.2% | +4.7% |
| USDBRL | 2020-04-24 | [USD/BRL surges to fresh record highs above 5.70 after Justice Minister Moro resigns - Forex Crunch](https://feedsoft.ai/events/8725-usd-brl-surges-to-fresh-record-highs-above-5-70-after-justice-minister-moro.md) | -0.4% | +2.7% |
| USDBRL | 2018-07-18 | [Brazil: Presidential race about to start - Rabobank - Forex Crunch](https://feedsoft.ai/events/64234-brazil-presidential-race-about-to-start-rabobank-forex-crunch.md) | -3.2% | +0.6% |

## Sources

- forexcrunch.com: https://www.forexcrunch.com/blog/2020/05/25/usd-brl-political-headwinds-facing-the-real-cibc/

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