O dollar rose 0.46%, quoted at R$4.810, around 9:27 am this Friday (3), with investors more cautious and risk-averse as they wait for the release of the Payroll report of jobs non-agricultural.
The document should give more information about how heated the economy of United States is and the labor market situation, two elements that influence interest rate decisions by the Federal Reserve . If the indication is of an overheated economy, the autarchy could be more aggressive in the elevations, which would benefit the dollar.
The Central Bank informed that this Friday it will start swap operations for the purpose of rolling over the maturity date of August 1, 2022, starting with the sale of 15,000 contracts in this session.
On Thursday (3), the dollar fell 0.42%, to R$ 4.786. already the Ibovespa closed up 0.93%, at 112,392.91 points.
overall feeling
The month of May saw strong global risk aversion triggered by fears about a possible generalized recession due to a series of interest rate hikes around the world to contain inflation, which tend to slow down the global economy.
The main one occurred in the United States announced by Federal Reserve on May 4th. Despite discarding hikes of 0.75 pp or a risk of recession, the municipality signaled at least two more hikes of 0.5 pp
Higher interest rates in the United States attract investments to the country’s fixed income due to its high security and favor the dollar, but harm bond markets and stock exchanges around the world, including the US.
On the other hand, with the end of lockdown in the Chinese city of Shanghai and easing restrictions in the capital Beijing, Chinese demand is expected to return to previous levels, which again favored commodity exporters and relieved some of the pressure on the real.
At the same time, the confirmation of the contraction of the US economy in the first quarter reinforced the view that the Fed will not be as aggressive in raising interest rates as previously anticipated. With the two novelties, the Ibovespa and the real found room for appreciation. Any change in that perception, however, harms both.
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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.
