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Brazil cut its benchmark interest rate by half a point to a record low to mitigate coronavirus effects. A Bloomberg survey shows economists expect the coronavirus to push Latin America's largest economy into recession.
Expected recession lowers Brazilian domestic demand for animal protein and feed, while lower rates may weaken the real, which is a mixed signal for commodity prices.
bloomberg.comMatthew MalinowskiMar 18, 2020After 621 past macro events, USDBRL moved a median +0.2% over 5 sessions (53% higher; middle half -1.3% to +1.4%), and +0.6% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
