Dollar opens higher this Super Wednesday, waiting for Fed and Copom

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Yesterday, the main stock index on the Brazilian stock exchange fell 0.86%, to 127,402 points. The North American currency ended the session at R$4.9454. Dollar operates lower this Wednesday. Pixabay The dollar opened higher this Wednesday (31), with the market awaiting monetary policy decisions in Brazil and the United States throughout the afternoon. This session also includes the most recent figures from the Brazilian job market. In 2023, the country recorded an average unemployment rate of 7.8%, the lowest level since 2014, according to the Continuous National Household Sample Survey (PNAD), released this Wednesday (31) by the Brazilian Institute of Geography and Statistics (IBGE). Investors are still keeping an eye on some results from large companies released the day before, with emphasis on Alphabet (owner of Google) and Microsoft, which exceeded expectations. See below for a summary of the markets. Dollar At 9:20 am, the dollar rose 0.17%, quoted at R$4.9540. See more quotes. The previous day, the North American currency was stable and closed at R$4.9454. With the result, it continues to accumulate: increase of 0.71% in the week; and gains of 1.91% in the month and year. Ibovespa Ibovespa starts operating at 10am. The day before, the index fell 0.86%, to 127,402 points. With the result, it accumulated: decrease of 1.21% in the week; falls of 5.06% in the month and 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? Understand what makes the dollar rise or fall What is moving the markets? Super Wednesday is marked by investors’ expectations regarding the direction of interest rates in Brazil and the United States. Here, the projection is that the Central Bank will reduce the Selic rate by 0.5 percentage points, to 11.25% per year, the lowest level in two years. Abroad, the market believes that the Federal Reserve (Fed, the American central bank) should keep its rates unchanged between 5.25% and 5.50% per year. In both cases, attention will be focused, above all, on the communications that central banks must issue announcing their decisions, because it is in these documents that investors can get a better idea of ​​what institutions are thinking in relation to the direction of interest rates and the economy as a whole. In Brazil, the highlight is the labor market data released in the morning. The average unemployment rate in 2023 was the lowest since 2014, falling to 7.8%. In the last quarter of the year, ended in December, the unemployment rate was 7.4%, a drop of 0.3 percentage points compared to the previous quarter. The annual value of the usual real income increased by 7.2% from one year to the next, being estimated at R$2,979. IBGE highlighted that the result is close to the highest level ever recorded by the survey, of R$ 2,989, also in 2014. “The result again did not bring surprises as it showed a labor market that is still tight and with strong income, even though it naturally starts losing pace. However, employment remains better than consensus”, comments Maykon Douglas, analyst at Highpar. Furthermore, some corporate balance sheets also have an impact on the business day. Santander Brasil recorded a recurring net profit of R$2.2 billion in the last quarter of 2023, compared to R$2.729 billion in the third quarter and R$3.122 billion in the same period of the previous year. In the United States, technology giants gained the spotlight. Alphabet (Google) earned more than US$86 billion (R$426.8 billion) between October and December, an increase of 13% compared to the same quarter of the previous year and above market expectations, recovering its growth level 2022. Microsoft also had a better result than expected, with revenue of US$62 billion (R$307.7 billion) in the last quarter of the year.

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