---
title: "Brazil Is A Powder Keg"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/295848698.md"
description: "Messy in BrazilBrazil is entering the messy part of the year. The easing impulse is fading just as election and fiscal risks are building, sending EWZ back toward critical long-term support. But with commodities holding up and Brazil vol still well below previous extremes, the setup is becoming more interesting than simply “sell Brazil.” The next move could be violent, while optionality remains relatively cheap.The liquidity tap is turning off"
datetime: "2026-08-13T21:16:43.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/295848698.md)
  - [en](https://longbridge.com/en/news/295848698.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/295848698.md)
generator: "portal-rs"
---

# Brazil Is A Powder Keg

## **Messy in Brazil**

Brazil is entering the messy part of the year. The easing impulse is fading just as election and fiscal risks are building, sending EWZ back toward critical long-term support. But with commodities holding up and Brazil vol still well below previous extremes, the setup is becoming more interesting than simply “sell Brazil.” The next move could be violent, while optionality remains relatively cheap.

## **The liquidity tap is turning off**

### Related Stocks

- [EWZ.US](https://longbridge.com/en/quote/EWZ.US.md)

## Related News & Research

- [3 Norwegian Bank Stocks Built For Higher Rates](https://longbridge.com/en/news/298240212.md)
- [Lithia & Driveway buys Rockwall Hyundai](https://longbridge.com/en/news/298297206.md)
- [TECHNICALS-CBOT wheat may retest support at $7.30-1/2](https://longbridge.com/en/news/298009599.md)
- [High Gas Prices Aren't Budging—Here Are 3 Stocks That Benefit](https://longbridge.com/en/news/298226362.md)
- [Jefferies-linked fund seeks Singapore injunction against Radiant World](https://longbridge.com/en/news/298213538.md)

---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**