# Fiscal policy alignment offers relief, but U.S. data limits market gains

> Brazilian markets gained relief after Finance Minister Fernando Haddad said the economic team and the Chief of Staff's Office were aligned on expected spending cuts. U.S. Treasury yields rose toward recent highs, with the 10-year near 4.3%, and U.S. jobs data added to global volatility ahead of the U.S. election.

- Date: 2024-10-31 · published 2024-10-31T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/28082-fiscal-policy-alignment-offers-relief-but-u-s-data-limits-market-gains
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Fiscal credibility limits further real weakness, which keeps Brazilian export prices from falling further. Higher U.S. yields support the dollar, which generally weighs on dollar-denominated grain prices.

## Read by commodity

- DXY: bullish ▲
- USDBRL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2022-12-06 | [Brazil's real up ahead of fiscal policy discussion, Chile's c.bank decision eyed \| Financial Post](https://feedsoft.ai/events/38432-brazil-s-real-up-ahead-of-fiscal-policy-discussion-chile-s-c-bank-decision-eyed.md) | +1.4% | +3.5% |
| USDBRL | 2021-02-26 | [Brazil intervenes in FX markets to arrest real's fall — Octa](https://feedsoft.ai/events/48851-brazil-intervenes-in-fx-markets-to-arrest-real-s-fall-octa.md) | +1.4% | +2.6% |
| USDBRL | 2021-01-19 | [Latam Daily: Brazil Recovery Moderates; Colombia Consolidates Gains \| Post](https://feedsoft.ai/events/49444-latam-daily-brazil-recovery-moderates-colombia-consolidates-gains-post.md) | +2.1% | +2.8% |
| USDBRL | 2023-06-26 | [USDBRL reflects Copom minutes, postponement of the fiscal framework and tax reform expectations](https://feedsoft.ai/events/35697-usdbrl-reflects-copom-minutes-postponement-of-the-fiscal-framework-and-tax.md) | +0.8% | -0.9% |
| USDBRL | 2019-11-21 | [EMERGING MARKETS-Latam FX muted after mixed signals on trade; Brazil stocks gain](https://feedsoft.ai/events/56373-emerging-markets-latam-fx-muted-after-mixed-signals-on-trade-brazil-stocks-gain.md) | +1.5% | -3.3% |
| DXY | 2025-11-18 | [Dollar clings to gains vs. yen with Japan fiscal policy, US data in focus \| Reuters](https://feedsoft.ai/events/22189-dollar-clings-to-gains-vs-yen-with-japan-fiscal-policy-us-data-in-focus-reuters.md) | +0.7% | -1.0% |
| DXY | 2024-11-06 | [For Europe's markets, Trump's return spells euro pain but bond gains \| Reuters](https://feedsoft.ai/events/5808-for-europe-s-markets-trump-s-return-spells-euro-pain-but-bond-gains-reuters.md) | +1.9% | +1.5% |
| DXY | 2023-08-31 | [Dollar gains on solid data, euro drops on cautious ECB comments - Markets - Business Recorder](https://feedsoft.ai/events/34781-dollar-gains-on-solid-data-euro-drops-on-cautious-ecb-comments-markets-business.md) | +1.8% | +2.3% |

## Sources

- valorinternational.globo.com: https://valorinternational.globo.com/markets/news/2024/10/31/fiscal-policy-alignment-offers-relief-but-us-data-limits-market-gains.ghtml

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