Good morning foreign exchange market! And here we go for a day of reaction to yesterday’s expected interest rate movements. We didn’t have any surprises regarding interest rates decisions either here or in the USA.
Cash closed the day at R$4.9384 for sale, as reported by Getmoney. The closing price for January was set by the Central Bank yesterday at 4.9535 reais for sale.
Today will be a data digestion day. Everything occurred within the expectations of economists. The statement from , Fed chair, ruled out the possibility of further interest rate increases and adopted a cautious stance in relation to the beginning of the cutting cycle. Now the market expects this to start in May, as I had already pointed out here for you!
And let’s vote here: is the dollar going up or down today? What is your opinion?
Has the market already been stressed enough in anticipation of the Fed’s decision, or now that the statement confirmed that it will not start the cutting cycle in March, does it have room to rise further?
The Copom cut 0.5 percentage points, which now stands at 11.25% per year. In a statement, the board noted that it expects cuts of the same magnitude in future meetings, if the scenario allows. We expect fiscal commitment from the government, so that this can be confirmed.
Abroad, wars and geopolitical uncertainties continue.
Economic calendar for today we will monitor the industrial PMI and CPI for January in the euro zone, the unemployment rate for December and a speech by Lane, a member of the ECB. Today there is an interest rate decision in England. Here in Brazil we will follow the IPP and Caged for December, the industrial PMI and the trade balance for January. In the US, unemployment insurance claims and the industrial PMI for January.
Good business everyone, lots of profit.