Dollar operates with volatility, on a day with an empty schedule and lower risk aversion

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On the eve, the US currency advanced 0.06% this Tuesday, sold at R$ 4.8976. Dollar notes John Guccione/Pexels The dollar operates with volatility this Wednesday (9), oscillating between highs and lows. The day is the day of a more emptied agenda of economic indicators at the global level, which helps to calm investors’ spirits, after several trading sessions marked by risk aversion caused, above all, by the fear that the United States will go through a recession. The market awaits the release of inflation data from Brazil and the United States tomorrow. These numbers can bring a better signal about how the economy is going and help investors to project the next steps of the central banks of both countries in relation to interest rates. Today, there was a release of inflation in China. At 10:55 am, the US currency rose 0.12%, quoted at R$ 4.9037. See more quotes. The day before, the dollar was up 0.06%, sold at R$4.8976. With the result, the currency started to accumulate: high of 0.47% in the week and 3.57% in the month; decrease of 7.21% in the year. 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? Understand what makes the dollar rise or fall What is messing with the markets? After a trading session marked by several news that stirred the market, this Wednesday the day starts more calmly, with little new data. In Brazil, the Brazilian Institute of Geography and Statistics (IBGE) released retail sales figures for June, which were stable compared to May, but increased by 1.3% over the same period last year. As a result, the country’s retail trade is 3.3% below the highest level ever recorded, which was reached in October 2020, when social isolation measures were relaxed. On the other hand, sales are 3.0% above the level registered before the beginning of the Covid-19 pandemic. Overseas, the highlight is China’s inflation data. In July, the world’s second-largest economy experienced a 0.3% year-on-year deflation, in line with analysts’ forecasts. The deflation data in the Asian country comes just one day after the release of Chinese import and export numbers, which had a sharp drop in July. This set of data helps to reinforce the view that China is going through a moment of slowdown in economic activity – which could impact the whole world, since the country is one of the biggest demanders of several products. Tomorrow, the inflation data for Brazil and the United States will also be released. A more controlled inflation, in both countries, may signal more controlled interest rates. In Brazil, the Monetary Policy Committee (Copom) has already started a cycle of cutting the Selic, basic interest rate, in the last week, with a decrease of 0.50 percentage points, to 13.25% per year. In the minutes of the meeting, the committee already indicated that further reductions of the same proportion should occur in the coming months. In the United States, the Federal Reserve (Fed, American central bank) still envisions a trend of high interest rates, which today are between 5.25% and 5.50% per year. One of the data that will determine whether rates continue to rise or not is precisely inflation.

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