Elon Musk Fires People and Brazil Real Rises Ahead of the Elections

How do Brazil’s elections affect the BRL?

After Luiz Inacio Lula da Silva won the elections in Brazil, the country slipped into protest from his opposers who voted for Jair Bolsonaro. They are blocking roads in states that supported the last president the most, stating that the voting process wasn’t fair. Still, Brazil Real has been rallying since the elections ended, rising against the USD by 3% in a single day.

Lula will probably use his victory to try to revive Brazil’s economy, which has suffered over the last four years. USDBRL approached the support line of 5.190, bouncing from it. We expect a breakout to happen, pushing the pair lower to 5.130 and 5.060.