O dollar fell 0.02%, quoted at R$5.110, around 9:25 am this Friday (26), hovering around stability while the market operates cautiously, awaiting the speech of the president of the Federal Reserve Jerome Powell, at the Jackson Hole Symposium.
Investors expect that Powell give signs in your speech about how aggressive the autarchy intends to be in the cycle of high interest rates United States .
The current split in the market revolves around the next monetary policy meeting in September. For some, the central bank will be less aggressive, with an increase of 0.5 percentage point, to impact less the country’s economy. Others point out that the economy is still buoyant, especially the job market, allowing for a more aggressive increase of 0.75 pp
Fed officials have already indicated that the next rate hikes will be made depending on the data released between each meeting, thereby reinforcing the weight of indicators and speeches in market behavior and bets.
On Thursday (25), the dollar rose 0.01%, to R$ 5.111. already the Ibovespa rose 0.56% to 113,531.72 points.
overall feeling
Investors’ global risk aversion, triggered by fears about a possible generalized economic slowdown due to a series of interest rate hikes around the world to contain record levels of inflation, has varied in intensity depending on expectations about the interest rate hike cycle in the United States. United.
The process of raising the US rate continued in July with a new increase of 0.75 percentage point. However, the Federal Reserve has signaled that it could make smaller hikes as the country’s economy already shows signs of slowing, seeking to avoid a recession.
Higher interest rates in the United States attract investments for the country’s fixed income due to its high security and favor the dollar, but harm markets and stock exchanges around the world, including the North American ones.
Investors are also monitoring the situation of China’s economy, which is also showing signs of a slowdown linked to a series of lockdowns in relevant cities. The expectation is that the Chinese government will intensify an effort to stimulate the economy, while facing difficulties to reverse a situation of low consumption by the population, which impacts the country’s demand for commodities.
In the domestic scenario, the Benefits PEC which creates or expands social benefits with an estimated cost of R$ 41 billion, was poorly received by the market, as it reinforces the fiscal risk by bringing new spending above the ceiling.
Even so, the Ibovespa and the real found room for recovery with an improvement in the mood of the market, although they could still be harmed if there is a resumption of pessimism.
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*With information from Reuters
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
