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Momentum on BRL and Ibovespa Accelerates

BRAZIL
  • In the past few weeks, global risk on environment has levitated some EM equity markets to new all-time highs.
  • The USD weakness since the start of the second quarter have led to a 14% appreciation in the BRL; the pair is approaching its psychological support at 5, which was rejected back in mid December.
  • Momentum on Brazilian equities has also been very strong in recent weeks, with Ibovespa breaking above its 125,320 resistance this week and currently trading slightly below the 130,000 level.

Source: Bloomberg/MNI

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