# Latam FX Talking: Making the most of a short-lived rebound | articles | ING THINK

> ING forecasts a short-lived rebound for the Brazilian real after the Lula government approved spending cuts, with USD/BRL at 5.42. The bank sees the real returning to 5.50 over the medium term, citing risks to central bank independence.

- Date: 2024-07-10 · published 2024-07-10T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/9456-latam-fx-talking-making-the-most-of-a-short-lived-rebound-articles-ing-think
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A firmer real eases the local cost of dollar-priced feed imports in the near term, but a medium-term return toward weaker levels would reverse that support.

## Read by commodity

- USDBRL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2024-07-10 | 5 | -4.8% | -3.6 | ING's 2024-07-10 note confirms the real's rebound to about 5.42 per USD after the spending cuts, directly describing the move, though it expects the rebound to be short-lived. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2023-07-14 | [Latam FX Talking: The beneficiary of emerging market portfolio flows \| articles \| ING THINK](https://feedsoft.ai/events/35242-latam-fx-talking-the-beneficiary-of-emerging-market-portfolio-flows-articles.md) | -0.1% | +0.7% |
| USDBRL | 2025-09-15 | [Latam FX Talking: Carry trade remains the dominant theme \| articles \| ING THINK](https://feedsoft.ai/events/23090-latam-fx-talking-carry-trade-remains-the-dominant-theme-articles-ing-think.md) | -0.5% | +2.4% |
| USDBRL | 2024-02-16 | [Latam FX Talking: Rethinking the real \| ING THINK](https://feedsoft.ai/events/31876-latam-fx-talking-rethinking-the-real-ing-think.md) | +0.0% | +0.4% |
| USDBRL | 2021-11-17 | [LATAM FX Outlook 2022: Return of the Pink Tide? \| articles \| ING THINK](https://feedsoft.ai/events/44256-latam-fx-outlook-2022-return-of-the-pink-tide-articles-ing-think.md) | +2.7% | +3.9% |
| USDBRL | 2023-04-11 | [Latam FX Talking: Temporary setback for the Mexican peso \| articles \| ING THINK](https://feedsoft.ai/events/36612-latam-fx-talking-temporary-setback-for-the-mexican-peso-articles-ing-think.md) | -2.7% | -1.8% |

## Sources

- think.ing.com: https://think.ing.com/articles/latam-fx-talking-july-2024/

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