Dollar operates falling, keeping an eye on oil and waiting for interest rate decisions
Understand what makes the price of the dollar rise or fall
The dollar is falling this Tuesday (16), with a decline of 0.26% close to 9:20 am, quoted at R$5.0535. Trading on Ibovespa, the main index on the Brazilian stock exchange, starts at 10am.
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▶ The new peace agreement between the United States and Iran continues to generate expectations in financial markets. The understanding would include, among other points, the reopening of the Strait of Hormuz and a new truce, including Lebanon. According to American President Donald Trump, the treaty also makes it "very clear" that Tehran will not have nuclear weapons.
With the imminence of an agreement, oil prices were falling this Tuesday. Around 8:50 am, a barrel of Brent, an international reference, had fallen 2.62%, quoted at US$80.99. West Texas Intermediate (WTI), from the USA, fell 2.91% at the same time, to US$ 78.40 per barrel.
▶ "Super Wednesday", the moment in which the central banks of Brazil and the USA are expected to announce their interest rate decisions, is also on the radar. The market expects the US Federal Reserve to maintain the US base rate, amid signs of still high prices in the country. Here, the estimate is for a new cut of 0.25 percentage points (p.p.) by the Monetary Policy Committee (Copom).
▶On the indicator agenda, the highlight is the publication of the April Monthly Trade Survey (PMC). Brazilian retail sales fell 1.5% in April compared to the previous month. Compared to a year before, there was an increase of 1%.
See below more details of the day in the market.
Dollar
a
Accumulated for the week: +0.09%;
Accumulated for the month: +0.48%;
Accumulated for the year: -7.69%.
Ibovespa
Accumulated for the week: -0.42%;
Accumulated for the month: -1.82%;
Accumulated for the year: +5.89%.
Signs of progress in negotiations between the USA and Iran
The USA and Iran reached an agreement to end the war last Sunday (14), according to information confirmed by American President Donald Trump and Pakistani Prime Minister Shehbaz Sharif. (follow the main events)
In a post on the social network with the Islamic Republic of Iran is now concluded. Congratulations to everyone!", declared Trump.
What are the points still to be clarified in the agreement between the US and Iran
The details of the agreement were not immediately released, but it is estimated that issues such as the Iranian nuclear program will have to be addressed later.
According to international media, the memorandum of understanding should provide:
a new 60-day ceasefire on 'all fronts', including the Lebanon;
the immediate reopening of the Strait of Hormuz - which, according to Trump, should be delayed until Friday, so that mines can be removed from the area;
Iran should also not charge fees on vessels, and local traffic should return to pre-war levels within 30 days;
that the US also lift the naval blockade that it has at the entrance to Hormuz;
that sanctions on Iran be progressively relaxed;
that Iran commits not to obtain a nuclear weapon.
Despite the agreement, Israel stated that it will not withdraw its troops from the Lebanon region and Hezbollah stated that it will observe compliance with the truce by the Israeli government.
Global markets
Financial markets continued to be positive, amid optimism regarding the agreement between the US and Iran.
In Europe, the main stock indices were operating higher this Tuesday.
Among the highlights, the German DAX rose 0.48% close to 9:20 am, while the French CAC-40 advanced 0.73% and the British FTSE 100 rose 0. 0.61%.
In Asia, shares closed mixed this Tuesday, as investors evaluated data from the Chinese economy and support from the technology sector.
The CSI300, which brings together the largest companies in Shanghai and Shenzen, fell 0.15%, while the Shanghai index, the SSEC, lost 0.11%. The Hang Seng fell 1.40%.
In Japan, the Nikkei rose 0.1%, while the Kospi, from South Korea, rose 2.11%.
*With information from the Reuters news agency.
Dollar
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Source: G1