Follow the exchange rate of the dollar and the stock market today (19) – 01/19/2024 – Market

The Brazilian stock exchange was operating slightly higher and the dollar fell this Friday morning (19), on a day of adjustments after three consecutive falls in the Ibovespa and rises in the American currency in recent days.

“I partly see a technical movement, with achievement after yesterday’s highs; the dollar was around R$4.70 at the end of last year, so it invariably calls for sales when it touches R$5.00”, Fernando explained to Reuters Bergallo, director of operations at FB Capital.

At 10:50 am, the Ibovespa rose 0.21%, to 127,583 points, while the dollar fell 0.23%, quoted at R$4.919.

The day before, in a back-and-forth session, the dollar rose to R$4.9570, the highest intraday level since December 13, after a sharp drop in unemployment benefit claims in the United States fueled a recent movement to reduce bets. in an interest rate cut in March by the Fed, also corroborated by resistance from Fed authorities to an early start of monetary easing.

Investors now expect the Fed (Federal Reserve, the American central bank) to cut interest rates by 1.4 percentage points this year, down from the 1.65 points estimated the previous week. They also see a roughly 54% chance that the first cut will occur in March, compared with 77% a week ago.

Genial Investimentos chief economist José Marcio Camargo wrote in a report to clients that the Fed’s monetary policy is “very dependent on data and, therefore, generates great volatility in the prices of financial assets” as new information is released.

Next week, inflation data closely monitored by the Federal Reserve will be released in the US, the PCE index, which could help guide market expectations, several traders said this Friday.

With Reuters