Now traders follow the economic events with new vision as inflation in the US seems like decreasing. Let’s see what releases will influence the market due to that factor.
USD/BRL: the Brazilian currency just lost 7% of value to the USD
Information is not investment advice
If you just make a free search for Brazil news, here is what comes first.
If you go a bit more into detail, you discover that more than 80% of the ICU bed in all major Brazilian cities are occupied, and patients keep coming. More than 11mln cases and 250,000 mortalities have been recorded in the country since the pandemic began. The current administration under President Jair Bolsonaro appears to be trying to downplay the humanitarian threat which, in combination with a lack of a sound anti-virus strategy, makes even the city governors openly stand against him. A dim outlook is definitely pressing on the Brazilian real.
In the meantime, Ex-President Lulu da Silva's corruption convictions have recently been annulled. That's worrying not because of "discarded justice" but because this event makes Lulu da Silva able to run for re-election - that may possibly drive Brazil into a further political divide. Which is no good for the Brazilian real. Hence, the depreciation.
If it goes like this, USD/BRL may well reach 6.00 over the weekend - watch this level as it may send the currency into a downward correction, though. The main thing is that these turbulences make USD/BRL highly volatile - and, hence, potentially profitable.
The week will have the biggest event in the US political process over the last two years. How will the elections affect the Forex market? We covered the most important news of this week in this report.
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.
2022 was rough: inflation, energy crisis, and plenty of other controversial situations…