Dollar opens higher, with an eye on US balance sheets and China growth data

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Last Friday, the US currency rose 0.11%, sold at R$ 4.7950, but accumulated a drop of 1.48% in the week. Dollar banknotes Pexels The dollar opened higher on Monday (17th), starting a week marked by the release of several corporate balance sheets in the United States, which give signs of how the world’s largest economy is doing for companies. Also weighing on the market is the Gross Domestic Product (GDP) data from China in the second quarter of this year, which came in below market expectations. At 9:20 am, the US currency rose 0.36%, quoted at R$ 4.8121. See more quotes. Last Friday (14), the dollar closed at a high of 0.11%, sold at R$ 4.7950. As a result, the currency began to accumulate: Falls of 1.48% in the week and 9.15% in the year; Increase of 0.13% in the month. COMMERCIAL X TOURISM: what is the difference between the quotation of foreign currencies and why is tourism more expensive? MONEY OR CARD? What’s the best way to take dollars on trips? DOLLAR: When is the best time to buy the currency? What is messing with the markets? The day is one of few economic indicators around the world, but one of them draws attention and generates a bad mood in the markets: China’s GDP. The country’s economy grew 6.3% in the second quarter, in the annual comparison, according to government data released this Monday. The result, although high, is below the 7% projected by specialists. There are expectations that the second largest economy in the world will experience a period of deceleration, with weak consumer demand and Chinese exports. A weaker than expected Chinese GDP affects business around the world because the Asian country is one of the main demanders for several products, mainly commodities. Thus, with a perspective of reduction in imports, oil and iron ore are experiencing a day of devaluation, as well as several other assets. Furthermore, looking abroad, what also has repercussions on business is the corporate earnings season in the United States. According to Daniel Moura, capital markets specialist, “If US companies are doing well, this could lead to an increase in demand for products and services around the world, which drives global growth as a whole and therefore , spills over here in Brazil too”. In addition, the results may impact commodity prices. “If the automobile industry is doing well, for example, it will buy more steel, aluminum, copper and other necessary materials, which increases the demand for these metals”, he points out. As Brazil is a major exporter of commodities, it tends to benefit from the movement. Finally, Moura points out that if the balance sheets are in line with expectations or better, this could bring confidence to investors, increasing the appetite for risk assets, such as the markets of emerging countries, as in Brazil – and the opposite is also valid. . In the domestic scenario, the highlight of the day is the release of the Boletim Focus, a report by the Central Bank of Brazil (BC) that gathers the projections of financial market analysts for the main economic indicators in the country. In this week’s edition, there was no change in projections for inflation, as measured by the Extended Consumer Price Index (IPCA). Expectations remain at 4.95% for 2023, which leaves inflation above the Central Bank’s target of 3.25%, ranging from 1.75% to 4.75%. As for the Brazilian GDP this year, estimates rose from 2.19% to 2.24%. Currently, the government’s official expectation is up to 2.4% of GDP growth in the year, according to an estimate published in June.

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