Friday , May 14 2021

The dollar has unstable Fed pre-decision day and with internal intelligence

The dollar was unstable on Thursday, 8, closing at a modest high of 0.22% at R $ 3,7479. Following the opening of the pair of emerging peers, falling against the real, the US currency aligned with the external scenario and touched $ 3.76 in the middle of the afternoon, then again had a negative bias just before the monetary policy decision of the Federal Reserve Bank of America (Fed, US Central Bank). Already close to closing, the currency reversed the fall, but closed close to stability. In the morning, successive falls that took the dollar to R $ 3,71 occurred in the middle of trade and foreign flows. The landing quickly brought buyers. Without a domestic news bulletin strong enough to support the fall, the currency came to be aligned with the emerging. In addition, the dollar was strengthened overall: it rose 0.55% against the DXY (17.35), which has a strong currency basket and over 1% against the South African, Mexican and Turkish currencies. The strength of the US currency is mainly linked to the expectation that, although the interest rate on capital will remain unchanged, monetary rigor continues to exist in December and by the Fed in 2019. This perception has already been highlighted by the monetary authority, but is reinforced by recent statements by President Donald Trump and Democratic Leadership – which won the majority of Parliament's seats in Tuesday's elections – to the approval of infrastructure investment projects that give more power the American economy. Internally, the news movement has contributed to weak news and internal mood after Wednesday's 16:00 approval of the 16.38% adjustment to the Federal Supreme Court (STF) ministers. By provoking a chain reaction in the Union and the state accounts, approval – to the will of President-elect Jair Bolsonaro – raises uncertainties about the rationale of public accounts for the coming year and the ability of the next government to measure the Congress's forces. The market also operates on a wait-and-see basis above the names of the Bolsonaro team and the clues about social security after the first signs exchanged by the new government group.

Barbara Nascimento
Content Estadao
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