Morgan Stanley: USD/BRL to test 5.60, could reach 6.00 if fiscal pressures intensify

Morgan Stanley says USD/BRL will test the 5.60 level and could reach 6.00 if fiscal pressures intensify. The bank also expects Brazilian interbank rates to decline through gradual cuts totaling 300-400 basis points, and Brazil's 10-year sovereign spreads to widen by around 50 basis points.

Detected & updated continuously · Source: Nebula