He Real Brazilian records losses close to 1% this viernis After having fallen Thursday at its lowest price in five weeks. The descent began late Wednesday, when Donald Trump announced that he would impose a 50% tariff to Brazil from August 1.
The last day of the week, the USD/BRL has moved between a daily minimum of 5,5319 and a maximum of the day in 5,5897. At the time of writing, the American session is already entrusted, the crossing is 5,5855, winning 0.98% in what we have been.
Lula warns that Brazil could also impose retaliation tariffs on the US of 50%
Brazilian president Lula da Silva has warned in statements made to Record TV that It could activate the reciprocity law approved by Congress at the beginning of 2025 if it fails to reach an agreement with the United States to eliminate the 50% tariff imposed Wednesday to enter into force at the beginning of August. Lula has assured that if Donald Trump charges them 50%, Brazil will charge another 50% to the US.
The open war between the two countries has more political dyes than economic, since the president of the United States, Donald Trump, justified his decision as punishment for the trial for coup d’etat that is celebrated in Brazil against his friend Jair Bolsonaro.
USD/BRL Price levels
The Momentum indicator points to the short and long term rise, although in 4 -hour graph it suggests a correction. If continuing, the first resistance appears at the maximum of yesterday in 5,6283. Above, the main barrier is in the mobile average of 100 in daily graphic in 5,6739. Above, the level to be exceeded will be in the maximum of June in 5,7296.
Down, the first support is in the 100 -hour mobile average in 5,4870. Below, there would be room for a fall to the 100 -hour mobile average in 4 hours in 5,4815.
US Dollar – Frequently Questions
The US dollar (USD) is the official currency of the United States of America, and the “de facto” currency of a significant number of other countries where it is in circulation along with local tickets. According to data from 2022, it is the most negotiated currency in the world, with more than 88% of all global currency change operations, which is equivalent to an average of 6.6 billion dollars in daily transactions. After World War II, the USD took over the pound sterling as a world reserve currency.
The most important individual factor that influences the value of the US dollar is monetary policy, which is determined by the Federal Reserve (FED). The Fed has two mandates: to achieve price stability (control inflation) and promote full employment. Its main tool to achieve these two objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the 2% objective set by the Fed, it rises the types, which favors the price of the dollar. When inflation falls below 2% or the unemployment rate is too high, the Fed can lower interest rates, which weighs on the dollar.
In extreme situations, the Federal Reserve can also print more dollars and promulgate quantitative flexibility (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is an unconventional policy measure that is used when the credit has been exhausted because banks do not lend each other (for fear of the default of the counterparts). It is the last resort when it is unlikely that a simple decrease in interest rates will achieve the necessary result. It was the weapon chosen by the Fed to combat the contraction of the credit that occurred during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy bonds of the US government, mainly of financial institutions. Which usually leads to a weakening of the US dollar.
The quantitative hardening (QT) is the reverse process for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the wallet values ​​that overcome in new purchases. It is usually positive for the US dollar.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
