Economy / Brazil
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Little In The Way Of Further BRL Upside
June 2008 | Market StrategySorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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Since President Luiz Inácio Lula da Silva took office in 2003, the Brazilian real has shown few signs of weakening. As the real continues to take out key target levels, now hovering just below our long-term BRL1.6000/US$ target against the US dollar, we note that there seems to be little in the way of further appreciation of the currency from a technical perspective. In fact, the previously unthinkable BRL1.7000/US$ target we have laid out several years ago is now forming medium-term trendline support for the unit.