He Real Brazilian records profits per second consecutive day This Wednesday, going up to maximum of almost three weeks.
He USD/BRL He has opened the day testing a daily maximum in 5,7267 and then falling strongly in the opening of the American session to 5,6600, its lowest level since April 4.
At the time of writing, the USD/BRL quotes about 5,6746, losing 0.91% in the day.
Trump changes his speech, the Wall Street Journal reveals that US tariffs could be reduced to 50%-65%.
- US President Donald Trump took a turn on Tuesday afternoon, ensuring a press conference that he did not plan to dismiss the president of the Fed, Jerome Powell. In addition, he announced that conversations with China were going well.
- This Wednesday, the Wall Street Journal (WSJ) has published that the White House considers to reduce rates on Chinese goods. According to WSJ sources, tariffs could be reduced to 50%-65%.
- He US services PMI has fallen three points in the preliminary reading of April, standing at 51.4 compared to March 54.4, worsening the estimated 54.4. The manufacturing sector, on the other hand, has improved 50.7 from 50.2, improving the 49.4 planned.
- The IMF yesterday published its economic projections, predicting that the Brazilian economy will grow by 2% in 2025only two tenths below the 2.2% planned in January. More negative was the IMF’s perspective on Brazilian inflation, since an increase in prices of 5.3% for this year is forecast compared to 4.83% recorded in 2024.
- Brazil will publish on Friday its inflation data of the middle of April. It is estimated that prices rise 0.43% compared to 0.64% above.
US dollar FAQS
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.
