# Brazil, Mexico currencies weaken after strong U.S. data

> Brazil's and Mexico's currencies weakened on Tuesday after stronger-than-expected US industrial data. The data reinforced expectations that the Federal Reserve would raise interest rates in December.

- Date: 2016-11-01 · published 2016-11-01T12:00:00.000Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/11054-brazil-mexico-currencies-weaken-after-strong-u-s-data
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

A weaker real and peso raise the local-currency cost of imported feed ingredients and can increase export competitiveness for Brazilian and Mexican meat and grain sellers.

## Read by commodity

- USDBRL: bullish ▲
- USDMXN: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2016-11-01 | 1 | +2.2% | 3.3 | Strong US data raised expectations of a December Fed hike and a firmer dollar, pressuring EM currencies including the real, but the stated weakening is dated Tuesday and may not match the move ending Nov 1. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2022-11-17 | [Brazil's real, stocks slide after budget proposal; other EM currencies weak \| Financial Post](https://feedsoft.ai/events/38885-brazil-s-real-stocks-slide-after-budget-proposal-other-em-currencies-weak.md) | +0.7% | -0.5% |
| USDBRL | 2024-06-26 | [Currencies from Mexico, Brazil Lead Emerging Peers Lower \| Financial Post](https://feedsoft.ai/events/29991-currencies-from-mexico-brazil-lead-emerging-peers-lower-financial-post.md) | +4.4% | +3.7% |
| USDBRL | 2024-11-11 | [Brazil's currency weakens amid government delays in announcing new fiscal measures \| Reuters](https://feedsoft.ai/events/27614-brazil-s-currency-weakens-amid-government-delays-in-announcing-new-fiscal.md) | -0.6% | +4.7% |
| USDBRL | 2020-01-20 | [For Wall Street, Mexico Has Stolen Brazil’s Thunder](https://feedsoft.ai/events/55287-for-wall-street-mexico-has-stolen-brazil-s-thunder.md) | +1.0% | +3.9% |
| USDBRL | 2024-12-19 | [Why Brazil’s currency is plunging](https://feedsoft.ai/events/27149-why-brazil-s-currency-is-plunging.md) | -0.5% | -2.5% |

## Sources

- reuters.com: https://www.reuters.com/article/emerging-markets-latam-idUSL1N1D20T5/?feedName=usDollarRpt&feedType=RSS

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.