Dollar fluctuates this Monday, in a week of inflation data and Copom minutes

[ad_1]

On Friday, the North American currency closed below R$4.90, at its lowest level in more than a month. The Brazilian stock market rose 2.70%, to 118,160 points. bearfotos/Freepik The dollar fluctuates this Monday (6), on a mild day after the United States employment report, also known as payroll, excited the markets at the end of last week. The week begins with a wait, awaiting Brazilian inflation data and the minutes of the last meeting of the Monetary Policy Committee (Copom), in which it was decided to reduce the basic interest rate. See the day in the markets below. Understand what makes the dollar rise or fall Dollar At 9am, the dollar is down 0.01%, quoted at R$4.8946. See more quotes. On Friday, the US currency ended the session with a decline of 1.56%, quoted at R$4.8953. With today’s result, it started to accumulate losses of: 2.34% in the week; 2.88% in the month; 7.25% in the year. Ibovespa Ibovespa starts operating this Monday from 10 am. On Friday, the index closed the day at its highest level since September, with an increase of 2.70%, at 118,160 points. As a result, it began to accumulate increases of: 4.29% in the week; 4.43% in the month; 7.68% in the year. READ ALSO CASH OR CARD? What is the best way to take dollars when traveling? DOLLAR: When is the best time to buy the currency? What’s moving the markets? In Brazil, the day started with markets moving sideways. Investors await a series of economic data, with emphasis on official inflation for October. The Brazilian Institute of Geography and Statistics (IBGE) releases the results of the Broad National Consumer Price Index (IPCA) on the 10th. Also this week will be the release of the minutes of the last Copom meeting, which made a new cut in the Brazilian basic rate ( Selic) of 0.50 percentage points (pp), to 12.25% per year. It was the third consecutive cut promoted by the monetary authority. The lower interest rates are in the country, the greater the market’s risk appetite tends to be. Thus, investors tend to sell their fixed income securities and buy shares, for example, driving the Brazilian stock market upwards. Part of the markets are still reflecting on Friday’s main news (3), the United States employment report, also known as payroll. The United States economy created 150,000 jobs in October, lower than expected by the market, which predicted 180,000 new jobs. “I believe that, after many weeks without a clear direction, the market is betting that the interest rate ceiling defined by the Fed (in this cycle of monetary tightening) has already been reached… and this greatly benefits emerging markets, which are naturally helped by the closing of the interest differential,” Fernando Bergallo, operations director at FB Capital, told Reuters. It is worth remembering that last Wednesday, the Federal Reserve (Fed, the US central bank) kept the country’s interest rates unchanged, but left the door open for another possible increase in borrowing costs in the future. On Monday, Chinese stocks hit a two-week high and the Hong Kong market also advanced, as Asian markets were closed when the number was announced. The CSI300 index, which brings together the largest companies listed in Shanghai and Shenzhen, closed up 1.35%, while the Shanghai index advanced 0.91%. Hong Kong’s Hang Seng index rose 1.71%. What are Copom’s messages and what to expect for the interest rate given the BC’s cycle of cuts

[ad_2]

Source link