Dollar opens slightly higher, while market reflects new economic data from Brazil and abroad

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The day before, the US currency fell 0.09%, sold at R$ 4.8022, renewing the lowest closing in a year. Dollar operates low this Friday Alexander Mils/Pexels The dollar opened slightly higher this Friday (16), in a movement to correct the lows recorded in recent trading sessions. On a day with a weaker agenda, the market follows the result of the preliminary GDP from the Central Bank of Brazil (BC) and inflation data released by the Getulio Vargas Foundation (FGV). Investors also reverberate some disclosures from abroad, with emphasis on interest rate decisions in Europe, China and Japan. At 9:04 am, the US currency rose 0.15%, quoted at R$ 4.8093. See more quotes. The day before, the dollar closed in a slight fall of 0.09% and closed quoted at R$ 4.8022, renewing the lowest level in a year. As a result, the currency began to accumulate falls of: 1.52% in the week; 5.34% in the month; 9.01% in the year. UNDERSTAND: What makes the dollar rise or fall against the real 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 BC released, this morning, the Economic Activity Index (IBC-BR), considered the “preview” of the Gross Domestic Product (GDP). In April, the indicator registered expansion of 0.56% in comparison with March, when there was a retraction of 0.14%. The GDP is the sum of all goods and services produced in the country and serves to measure the evolution of the economy. The BC’s IBC-Br is an index created to try to anticipate the GDP result, but the results were not always close to the official data released by the IBGE. Also this morning, the FGV released the General Price Index 10 (IGP-10) for June. This index measures the accumulated inflation between the 11th of the previous month and the 10th of the current month and, in June, it had a drop of 2.20%, the biggest reduction in the entire historical series, started in 1993. In the last 12 months, the accumulated decrease is 6.31%. The IGP-10 is made up of three sub-indices: the Broad Producer Price Index (IPA), which gives me wholesale inflation and dropped 3.14% in the month; the Consumer Price Index (IPC), with a drop of 0.18% driven by the Transport group; the National Construction Cost Index (INCC), which was the only one that advanced, up 1.19% in June. These results are in line with data observed in the latest release of the Extended Consumer Price Index (IPCA), by the Brazilian Institute of Geography and Statistics (IBGE), which reflects the country’s official inflation. In May, the IPCA rose 0.23%, in a sharp deceleration and well below market expectations. Among the groups that fell the most in that month, Transport also stands out. A reduction in inflation, according to experts, reinforces expectations that the Central Bank of Brazil may start a cycle of low Selic, the basic interest rate, soon, which encourages the market. International markets Abroad, investors echo the latest monetary policy decisions in several countries. Yesterday, the European Central Bank (ECB) raised borrowing costs for the eighth consecutive time, by 0.25 percentage points, to 3.5% per annum, the highest level in 22 years. Today, the head of the Belgian central bank, Pierre Wunsch, said that the ECB will only stop the cycle of hikes if it sees a “substantial drop” in inflation. Earlier, the Consumer Price Index for the euro zone was released, which showed an accumulated increase of 6.1% in the last 12 months through May, compared to 7% in April. In Japan, “the cap on the 10-year Japanese government bond yield was kept at 0.5% and short-term interest rates remain at -0.1%”, despite stronger-than-expected inflation , highlights the BTG Pactual analysis team. Still on the Asian continent, China cut some of its main interest rates the day before, as a way of trying to stimulate activity in the second largest economy in the world, which has been slowing down. The Chinese government should soon announce new economic stimuli.

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