Bank of America
FX Outlook 2026: Structural Dollar Headwinds
LIVE5 December 2025USD bearish
Back to CurrenciesModerately Bullish
USD/BRL
BRL carry attractive but October elections inject volatility. Prefer options-bas
BofA Forecast Path
Cross-Firm Forecast Comparison
Key Drivers
October election risk
High carry
Fiscal trajectory
BCB policy
All Firm Targets (Dec '26)
JPMBullish5.55
GSBullish5.20
ING5.20
BARCNeutral5.20
MUFGModerately Bullish5.15
BofAModerately Bullish5.10
MSModerately Bullish5.10
DBBullish5.05
Analysis Summary
BRL carry attractive but October elections inject volatility. Prefer options-based exposure to manage tail risks. Fiscal trajectory improving under current administration.