# Bolsonaro effect on Brazilian markets and currency — MercoPress

> Brazilian shares hit an all-time high before closing 3.6% higher on January 2, 2019, and the real firmed 2.4% for its best day in over seven months. Markets reacted to reports that Economy Minister Paulo Guedes had drafted a temporary decree for pension reform.

- Date: 2019-01-03 · published 2019-01-03T12:00:00.000Z
- Category: policy · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/12358-bolsonaro-effect-on-brazilian-markets-and-currency-mercopress
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Currency strength driven by pro-reform policy makes Brazilian agricultural exports pricier in dollar terms, a mild bearish factor for soybean and meal export prices.

## Read by commodity

- USDBRL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2019-01-03 | 5 | -4.6% | -3.0 | Reports the real's best day in over seven months (+2.4%) as investors reacted to Guedes' pension reform decree plans, a sentiment-driven inflow that lowered BRL per USD. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2022-10-03 | [Brazil markets post best day since 2020 as Bolsonaro outperforms polls](https://feedsoft.ai/events/7984-brazil-markets-post-best-day-since-2020-as-bolsonaro-outperforms-polls.md) | -3.4% | -2.9% |
| USDBRL | 2024-10-31 | [Brazilian government reaches agreement on spending cuts](https://feedsoft.ai/events/28083-brazilian-government-reaches-agreement-on-spending-cuts.md) | -1.3% | +3.8% |
| USDBRL | 2019-01-03 | [Brazil markets soar as new government vows to shrink state](https://feedsoft.ai/events/12357-brazil-markets-soar-as-new-government-vows-to-shrink-state.md) | -3.4% | -4.1% |
| USDBRL | 2022-10-03 | [Brazil girds for tight runoff vote after Bolsonaro's strong showing \| Reuters](https://feedsoft.ai/events/7986-brazil-girds-for-tight-runoff-vote-after-bolsonaro-s-strong-showing-reuters.md) | -3.4% | -2.9% |
| USDBRL | 2025-06-25 | [Brazil’s Central Bank intervention in FX market raises questions](https://feedsoft.ai/events/24424-brazil-s-central-bank-intervention-in-fx-market-raises-questions.md) | -0.7% | +0.9% |

## Sources

- en.mercopress.com: https://en.mercopress.com/2019/01/03/bolsonaro-effect-on-brazilian-markets-and-currency

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