Political Change Could Boost Brazil Economy

A change in Brazil’s government could provide a boost to the emerging market’s economy, JPMorgan Chief Emerging Markets Strategist Adrian Mowat said Wednesday.

“Investors are looking for policy change in Brazil so we should get some momentum into the October election,” he said on CNBC’s “Fast Money.”

Mowat recent upgraded Brazil to an “overweight” rating, as the hope of policy change rises and relative momentum remains strong.

“I think there’s been a number of important factors for Brazil this year. One, the price of borrowing for emerging market companies has been falling. … We’ve seen currency strength has come down and we’ve seen very strong flows into EM fixed income,” said Mowat. “We’ve also got the hope of policy change.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza