Dollar opens lower awaiting interest rate decision in Europe

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The previous day, the North American currency fell 0.21%, quoted at R$4.9452. The main stock index on the Brazilian stock exchange ended up 0.62%, at 128,890 points. Dollar Pixabay The dollar opened slightly lower this Thursday (7), as investors await the interest rate decision from the European Central Bank (ECB). The market is also awaiting new speeches from the Federal Reserve president (Fed, the American central bank), Jerome Powell, about the United States economy and the interest rate scenario in the country. See below for a summary of the markets. Dollar At 9:15 am, the dollar fell 0.13%, quoted at R$4.9386. See more quotes. The previous day, the North American currency fell 0.21%, quoted at R$4.9452. With the result, it accumulated: retraction of 0.19% in the week; drop of 0.55% in the month; and an increase of 1.91% in the year. Ibovespa Ibovespa starts operating at 10am. The day before, the index rose 0.16%, to 128,890 points. As a result, it accumulated drops of: 0.22% in the week; 0.10% per month; and 3.95% in the year. Understand what makes the dollar rise or fall 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? On another day of an empty economic agenda in Brazil, eyes turn, this time, to Europe. During the morning, the ECB releases its monetary policy decision, with investors expecting that interest rates should remain unchanged at 4% per year. There is also expectation about the speech by Jeome Powell, president of the Fed, in the US Senate this Thursday. Yesterday, the central banker had already spoken in the Chamber of Deputies. He said future decisions about when and how quickly the Fed should cut U.S. interest rates will be based solely on economic data. “Our focus is full employment and price stability, and the data affects the outlook. These are the things we will be looking at,” he said in his speech. He said, however, that continued progress in reducing inflation is “not guaranteed,” a fact that has prevented Fed officials from committing to any schedule or pace of rate cuts. Currently, interest rates in the country are between 5.25% and 5.50% per year and there is a lot of expectation that the cuts will begin. Before the Fed’s last meeting, many analysts believed the first reduction could happen in March. But, with the institution warning that it does not see room for a cut anytime soon, projections have changed and, now, most believe that these reductions should begin in the middle of the year, between June and July. The market is also awaiting the release, tomorrow, of the payroll, the most important employment report in the United States. Still abroad, in China, export and import data positively surprised the market. Between January and February, exports rose 7.1%, against expectations of 3.0%, while imports increased 3.5%, against projections of 2.2%.

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