INSUBCONTINENT EXCLUSIVE:
The US dollar gained significant ground on Tuesday, closing at R$5.6553 against the Brazilian real, marking a 1.32% increase.This surge
reflected growing investor caution ahead of key inflation reports from both Brazil and the United States.In Brazil, August saw unexpected
deflation, the first since June 2023
The National Consumer Price Index (IPCA) fell by 0.02% month-over-month, surprising economists who had predicted a slight 0.01% rise.Despite
Oil Slump and Inflation Expectations in Brazil and US
(Photo Internet reproduction)Markets still anticipate an interest rate hike in the coming week, as the recent unanchoring of inflation
this disappointing figure raised concerns about global trade and economic growth prospects.Commodity markets felt the impact, with oil and
iron ore prices dropping significantly
This decline further pressured the currencies of commodity-exporting nations like Brazil.Attention now turns to the US Consumer Price Index
This data could reshape Federal Reserve policy expectations.Current market sentiment shows a 67% probability of maintaining interest rates
at 5.00-5.25%, with a 33% chance of a cut to 4.75-5.00%.Lower US rates typically weaken the dollar as investors seek higher yields elsewhere
