Dollar opens slightly lower, awaiting US employment data

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The day before, the North American currency fell 0.45%, quoted at R$4.9151. The main stock index on the Brazilian stock exchange ended up 0.57%, at 128,481 points. Dollar operates on the rise Karolina Grabowska The dollar opened slightly lower this Friday (2), with the market awaiting new employment data in the United States. Investors also continue to reflect on last Wednesday’s decisions (31) on interest rates in Brazil and the USA. Furthermore, in the domestic scenario, Brazilian industry data released this morning surprised positively. See below for a summary of the markets. Dollar At 9:04 am, the dollar was down 0.03%, quoted at R$4.9138. See more quotes. Yesterday, the North American currency fell 0.45%, quoted at R$4.9151. With the result, it accumulated: increase of 0.09% in the week; drop of 0.45% in the month; and a gain of 1.29% in the year. Ibovespa Ibovespa closed up 0.57% the day before, at 128,481 points. With the result, it accumulated: decrease of 0.38% in the week; increase of 0.57% in the month; and a drop of 4.25% in the 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? The main release this Friday (2) will be the United States jobs report, the payroll, for January. The market continues to monitor the strength of the labor market to align expectations about the direction of US interest rates. “A solid payroll performance can reinforce optimism in the market, although it is considered the biggest challenge of the moment due to its ability to influence expectations about American monetary policy”, explains Carlos Honorato, professor at FIA Business School. On Wednesday, the Federal Reserve (Fed, the North American central bank) decided once again to keep the country’s interest rates in the range of 5.25% and 5.50% per year. This remains the highest rate level since 2001. The decision was already expected by the market. However, Jerome Powell’s speeches after the meeting stood out. The Fed president said that the institution is not working with the scenario of cutting interest rates in March, reaffirming that this is unlikely. “This ended up being the fundamental phrase of your statement and the market reacted to this comment, with the probabilities of cuts in March going from more than 50% to around 35%”, points out José Maria Silva, Allocation and Intelligence coordinator at Ave. Still high interest rates worry the market because they make credit-taking processes more expensive for people and companies, which can reduce consumption and increase default rates. In this scenario, the biggest fear is that the United States will go through an economic recession in 2024. Still abroad, the market remains attentive to news about the North American banking system and the indicator agenda. On Wednesday, New York Community Bank (NYCB), which bought part of Signature Bank in a $2.7 billion deal last year as the institution marked the third-largest bankruptcy in U.S. history, reported a below market estimates. The scenario, according to experts, once again raised concerns about the country’s regional banks. NYCB shares fell more than 11% on Thursday. In Brazil, on Wednesday, the Copom reduced the Selic rate by 0.5 percentage points, to 11.25% per year, the lowest level in two years, within what was expected. The Committee also signaled that it is working with a scenario of reductions of the same magnitude in its next meetings. Still on the domestic agenda, the Brazilian Institute of Geography and Statistics (IBGE) reported this Friday that Brazilian industrial production rose 1.1% in December compared to the previous month, surprising positively. In relation to the same month of the previous year, production increased 1.0%. Expectations in a Reuters survey of economists were for an increase of 0.3% on a monthly basis and 0.1% on an annual basis.

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