# The 'Lula effect' conditions Argentine assets: why the market watches the 2027 elections cautiously

> Argentine assets lagged the rally that followed the Democratic victory in the US, as US Treasury yields fell to 4.88%. Brazil's central bank held the Selic at 13.7% after five consecutive cuts, and the Brazilian real strengthened from 5.50 to 5.46 per dollar.

- Date: 2026-11-05 · published 2026-11-05T06:09:47.508Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/81187-the-lula-effect-conditions-argentine-assets-why-the-market-watches-the-2027
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Brazil's rate pause and firmer real support Brazilian assets and tighten monetary conditions there, while lower US yields are a mild macro tailwind for commodities; the direct effect on feed prices is limited.

## Read by commodity

- USDBRL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2022-10-31 | [Brazilian assets rally in volatile session after Lula elected president](https://feedsoft.ai/events/39342-brazilian-assets-rally-in-volatile-session-after-lula-elected-president.md) | -5.8% | -1.1% |
| USDBRL | 2020-03-09 | [Brazil central bank to continue FX intervention as long as it takes to calm market \| Financial Post](https://feedsoft.ai/events/6408-brazil-central-bank-to-continue-fx-intervention-as-long-as-it-takes-to-calm.md) | +2.7% | +14.6% |
| USDBRL | 2019-01-30 | [In emerging markets, the peso is the best-positioned currency - The Mazatlan Post](https://feedsoft.ai/events/61301-in-emerging-markets-the-peso-is-the-best-positioned-currency-the-mazatlan-post.md) | -1.3% | +0.5% |
| USDBRL | 2021-08-27 | [Latam FX range bound on caution ahead of Powell speech - Markets - Business Recorder](https://feedsoft.ai/events/45832-latam-fx-range-bound-on-caution-ahead-of-powell-speech-markets-business-recorder.md) | -1.5% | +1.9% |
| USDBRL | 2021-06-18 | [Latam Weekly: Connect the Dots, Mind the Gaps \| Post](https://feedsoft.ai/events/46869-latam-weekly-connect-the-dots-mind-the-gaps-post.md) | -2.1% | +1.3% |

## Sources

- infobae.com: https://www.infobae.com/economia/2026/11/05/el-efecto-lula-condiciona-a-los-activos-argentinos-por-que-el-mercado-mira-con-cautela-las-elecciones-de-2027/

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