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Dollar Begins Day on the Decline

by Marcus Thompson

Key Takeaways

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  • The dollar experienced an early trade drop, trading at R 5.1799 around 9:10 am on Wednesday.
  • Januarys IPCA data in Brazil showed a monthly increase of 0.33 and an annual rise of 4.44, slightly higher than anticipated, which contributed to downward pressure on the Ibovespa throughout the trading session.
  • Gabriel Galípolo, President of Brazils Central Bank, is scheduled to attend an event hosted by BTG Pactual today. He previously stated that signs of a rate hike beginning in March should not be interpreted as a final victory against inflation.
  • In the U.S., investors are waiting for the delayed release of nonfarm payrolls data, postponed due to the government shutdown. Economists project around 70,000 jobs added in January and a potential rise in the monthly unemployment rate to 4.4. These figures may influence upcoming decisions regarding U.S. monetary policy.

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Dollar Slides in Early Trade, Brazil’s Ibovespa Affected by Inflation Data and U.S. Job Figures Approach

This Wednesday began with a 0.29 drop in the dollar’s value, trading at R 5.1799 around 9:10 am. Brazil’s Ibovespa stock index opened at 10 am. Gabriel Galípolo, President of Brazil’s Central Bank, is scheduled to attend an event hosted by BTG Pactual today. Prior to his appearance, January’s IPCA data was released, showing a monthly increase of 0.33 and an annual rise of 4.44—slightly higher than anticipated. On Monday, Galípolo stated in an ABC interview that signs of a rate hike beginning in March should not be interpreted as a final victory against inflation. The higher-than-expected IPCA data underscored the Central Bank’s cautious stance, contributing to downward pressure on the Ibovespa throughout the trading session. In the U.S., investors are focused on the delayed release of nonfarm payrolls data, postponed due to the government shutdown. G1 reports that economists project around 70,000 jobs added in January, potentially signaling the strength of the American labor market. Investors are also closely monitoring the monthly unemployment rate, which is expected to rise to 4.4. G1 notes that these figures arrive at a sensitive time and may influence upcoming decisions regarding U.S. monetary policy.

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