Dollar opens high and rises above R$ 5.20; risk of recession in the US and Lula’s speech are on the radar

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On Wednesday, the US currency rose 1.10%, quoted at R$ 5.1615, after operating in decline during the morning. Dollar banknotes Pexels The dollar opened at a sharp high this Thursday (19), maintaining the negative movement observed on the previous day. On investors’ radar, the interview given by President Luiz Inácio Lula da Silva to Natuza Nery for Globonews. In the external scenario, the market continues to echo statements by Federal Reserve leaders (Fed, the central bank of the United States), who have increased expectations that the largest economy in the world will go through a period of recession. At 9:03 am, the US currency rose 1.46%, quoted at R$ 5.2371. See more quotes. The day before, the dollar rose 1.10% and closed the day sold at R$5.1615. With the result, the currency accumulates a drop of 3.27% in the year. READ ALSO: UNDERSTAND: What makes the dollar rise or fall in relation to the real COMMERCIAL X TOURISM: what is the difference between the quotation of foreign currencies and why is tourism more expensive? DOLLAR: When is the best time to buy the currency? MONEY OR CARD? What’s the best way to take dollars on trips? What is messing with the markets? On Wednesday (18), the first exclusive interview with Lula since his election by Globonews was aired. Among other subjects, the president spoke about economic issues widely addressed by the financial market. Lula stated that the independence of the Central Bank of Brazil is “nonsense” and that the current inflation target, defined by the National Monetary Council (CMN), hinders economic growth. BTG Pactual analysts also highlight the president’s speeches about the need for the economy to grow again, about establishing a new relationship between capital and work and strengthening the defense industry. In addition, Lula also reiterated in a speech after a meeting with trade unionists that he intends to implement his campaign promise to exempt income tax for those earning up to R$ 5,000. However, the president said that the measure needs a law and, therefore, it cannot be done “in a shout”, but that his team will “build it”. Still in the speech, Lula said that readjusting the minimum wage “is the best way to distribute income in this country”. The president also defended that it is no use for Brazil’s Gross Domestic Product (GDP) to grow if it is not distributed. The president signed an order yesterday with a proposal to raise the minimum wage. Abroad, yesterday the Federal Reserve (Fed) published the evaluations of the Beige Book, which summarizes the opinions of businessmen collected by the Fed districts until January 9th. The agency reported that prices have slowed in most of the 12 districts where the US central bank is present, while the tight job market continues to pressure wages in the US. In the area of ​​inflation, the general assessment is that high prices continue to impact the purchasing power of American consumers even after the deceleration of inflation. Still, consumer spending gained momentum driven by purchases during the year-end recess. Unlike inflation, the job market still shows no signs of cooling down and remains tight, reports the document. Thus, there is still “high wage pressure” in the US. The Beige Book reports that employment continued to rise in most of the 12 Fed districts and companies are still struggling to fill open positions, even in the face of increased job supply in some regions of the US. Initial plugin text

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