Dollar operates in fall, waiting for Fed and BC

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On the previous day, the US currency fell by 0.80%, sold at R$5.0732. Dollar Pixabay The dollar operates in decline this Wednesday (1), awaiting decisions on interest rates in Brazil and the United States. At 9:07 am, the US currency fell 0.29%, quoted at R$ 5.0586. See more quotes. On the previous day, the US currency retreated 0.80%, quoted at R$ 5.0732. With the result, it closed the month with an accumulated loss of 3.88%. In the week, the drop is 0.74%. READ ALSO: UNDERSTAND: What makes the dollar rise or fall in relation to the real COMMERCIAL X TOURISM: what is the difference between the quotation of foreign currencies and why is tourism more expensive? DOLLAR: When is the best time to buy the currency? MONEY OR CARD? What’s the best way to take dollars on trips? What is messing with the markets? The monetary policy decisions of the Federal Reserve (Fed, the central bank of the United States) and the Brazilian Central Bank should guide the markets this Wednesday. The Federal Open Market Committee (FOMC) of the Federal Reserve releases its monetary policy decision at 4 pm. The basic interest rate is between 4.25% and 4.5% and the expectation is for an increase of 0.25 percentage points, to between 4.5% and 4.75%. At 4:30 pm, Fed Chairman Jerome Powell holds a press conference to comment on the decision. A US private sector job creation survey for January will also be released. The previous reading was opening 235 thousand jobs. The expectation is to create 178,000 jobs. For Rico’s team, the data point to a continued deceleration of inflation in the US. However, with the risk of recession still present, the market remains cautious with risky assets. For Rafael Scardua, a partner at Matriz Capital, if there really are signs of easing in the increase in interest rates in the US, the markets should react positively. “If the decision makes room for the fall in interest rates to begin, companies will have more room to expand.” UNDERSTAND: How does a new interest rate hike by the Fed affect Brazil? BACKGROUND: The real’s performance was worse under the Dilma and Bolsonaro governments Here, the Monetary Policy Committee (Copom) announces, as of 6:30 pm, the decision on the basic interest rate of the Brazilian economy, the Selic, currently at 13, 75% per annum, to be practiced until March 22, 2023. According to a survey carried out by Valor PRO with 106 financial institutions consulted, there is unanimity for the permanence of the rate. Jaiana Cruz, financial planner and partner at AVG Capital, believes that the Selic drop may only become a reality from the second half of 2023, “because the scenario remains full of uncertainties”. “As we begin to see lower inflation, the BC will act to make the interest rate compatible. But today we have a scenario of fiscal risks and, until we see inflation actually improving, I believe that the strategy will follow maintenance of interest”, foresees Ricardo Jorge, specialist in fixed income and partner of Quantzed. Investors are still keeping an eye on the internal congressional elections taking place this week. Initial plugin text

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