Dollar drops on the eve of US inflation release

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Dollar drops on the eve of US inflation release

This Monday (12), the dollar began the week with a decline against the real, on a day marked by weakness in the US currency abroad, while market participants awaited US inflation data with release scheduled for Tuesday. (13).

At 9:06 am (GMT), the spot dollar retreated 0.57%, to R$ 5.1170 on sale. On B3, at 9:06 am (GMT), the dollar futures contract with the first maturity fell 0.69%, to R$ 5.1455.

In this trading session, the Central Bank will auction up to 15 thousand traditional foreign exchange swap contracts for the purpose of rolling over the maturity date of October 3, 2022.

The spot commercial dollar fell 1.15% on Friday (9), in a session that had the real as the most appreciated currency among the currencies of emerging countries. During the week, the American currency showed a devaluation of 0.77% in relation to the Brazilian currency.

The appreciation of raw materials and shares of companies linked to the export of these products, especially in sectors related to the production of metals, favored the fall in the exchange rate by attracting dollars from foreign investors to the country.

On Friday, iron ore futures on the Dalian and Singapore exchanges posted their biggest weekly gains in six weeks.

In addition to showing signs that it intends to adopt a monetary policy focused on heating the economy, China announced measures to stimulate investment, such as in new infrastructure projects.

China’s intensified support for a struggling housing market has bolstered ferrous commodities.

On Wednesday (7), weak data on China’s trade balance had led to sharp declines in raw material prices and exporter stocks. The main highlight was the drop in oil prices to values ​​prior to those practiced before the beginning of the Ukrainian War.

Despite recent lows, the price of Brent oil, a benchmark for the market, adds 18.6% gain in 2022.

Stock market indicators also reflected on Friday the optimism of investors with the deceleration of inflation in Brazil and announcements of economic stimulus in China, among other factors abroad that resulted in a positive weekly close in the main stock exchanges of the planet.

On the Brazilian Stock Exchange, the Ibovespa rose 2.17% on Friday. In the week, there was a gain of 1.30%. In the year, the stock market rose 7.13% until the close of last week.

Shares of retail, transport and construction companies gained strength on the stock exchange this Friday. These are segments that benefit from the fall in inflation and the expectation that, with the deceleration of consumer prices, interest rates will stop rising.

IBGE data showed that the IPCA (official inflation index) fell by 0.36% in August, accumulating a high of 8.73% in 12 months.

This Friday’s optimism was also related to analysts’ estimates for a slight deceleration of inflation in the United States. The August data will be released this Tuesday (13). A Bloomberg survey indicates a 0.01% drop in the monthly price index.

In New York, in the last week, the S&P 500 index, which is the parameter for the American stock market, advanced 3.65%, after three weeks of decline.

In Europe, the index that tracks the top 50 companies in the euro zone rose 0.72% in the same week that there was an all-time high of 0.75 percentage point in the European Central Bank’s interest rate.

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