05/06/2024 – 10:30
The dollar continues to rise this Monday, 6th, after opening stable, and renewed its maximum at R$ 5.0918 (+0.43) on the spot market. Stonex market analyst, Leonel Mattos, assesses that the demand for the dollar may be reflecting profit-taking, after the dollar’s loss against the real of 0.91% in the week, amid the day’s weaker agenda and after the Chinese services PMI fell in April to 52.5.
“The services PMI in China slowed slightly, worsening expectations about domestic demand and harming the real,” says the analyst.
Mattos highlights that the upward adjustment of the dollar against the real is limited by the appreciation of commodities and the public sector primary surplus of R$1.177 billion in March, which contradicted the market’s median projection of a primary deficit of R$1.70 billion .
The exchange market should be cautious because the week brings a complicated economic agenda in Congress, with an impasse still over the tax exemption for municipalities and a vote on presidential vetoes on Thursday.
“Congressmen must evaluate President Lula’s partial veto of the committee’s amendments and, if it is overturned by Congress, the government should have a negative impact of R$5.6 billion on this year’s budget”, reports the analyst.
Furthermore, Mattos points to the vote scheduled for this Tuesday in the Senate’s CCJ on the advance of additional credit of R$15.7 billion to the Union, a measure that changes the fiscal framework.
Abroad, iron ore gained 2.63% in Dalian, China, this Monday. Oil rose around 0.70% recently, after falling around 6% last week.
Saudi Aramco, Saudi Arabia’s state-owned oil company, announced that it will raise oil prices in June for customers in northwest Europe, Asia and the Mediterranean, according to Dow Jones Newswires. Furthermore, the possibility that Israel and Hamas will be able to reach a ceasefire agreement is low.
At 10:18 am, the spot dollar rose 0.29%, to R$5.0843. The dollar for June gained 0.17%, at R$5.0960.
#Dollar #rises #achievement #caution #due #China #Congress #fiscal #agenda
Hello my darling, I just wanted to express how well written and comprehensive this post is, covering almost all the essential details. More blogs like this one would be nice, in my opinion.