# USDBRL should reflect monetary policy decisions from Brazil, the US, Japan, and England and data for the US and China

> A forex outlook says USD/BRL may strengthen on expectations that US rates stay high for longer, along with political risk from President Lula's comments on 2024 budget targets. It also flags possible Brazilian central bank hawkishness and Chinese data as offsetting factors.

- Date: 2023-10-31 · published 2023-10-31T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/33832-usdbrl-should-reflect-monetary-policy-decisions-from-brazil-the-us-japan-and
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A firmer dollar against the BRL makes Brazilian soybean and corn exports cheaper in dollar terms, which can support export flows and weigh on US export prices.

## Read by commodity

- DXY: bullish ▲
- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2023-05-31 | [USD/BRL: Real weakness could hasten if government tries to influence monetary policy – Commerzbank: Analytics and Market news from 31 May 2023 14:41](https://feedsoft.ai/events/36148-usd-brl-real-weakness-could-hasten-if-government-tries-to-influence-monetary.md) | -3.0% | -4.3% |
| USDBRL | 2024-09-23 | [Dollar rises more than 1% at the start of a week marked by inflation data in Brazil and the US \| Brasil 247](https://feedsoft.ai/events/28517-dollar-rises-more-than-1-at-the-start-of-a-week-marked-by-inflation-data-in.md) | -1.1% | +3.9% |
| USDBRL | 2024-07-01 | [Brazil's central bank director says expansionary fiscal policy harms disinflation](https://feedsoft.ai/events/9452-brazil-s-central-bank-director-says-expansionary-fiscal-policy-harms.md) | -1.8% | +1.7% |
| USDBRL | 2019-02-19 | [Latam FX weak, Brazil's real drops ahead of pension reform plans - Pension Policy International](https://feedsoft.ai/events/60781-latam-fx-weak-brazil-s-real-drops-ahead-of-pension-reform-plans-pension-policy.md) | +1.4% | +1.5% |
| USDBRL | 2024-07-15 | [Brazil: the real economy and markets - the quest for synchronicity](https://feedsoft.ai/events/29481-brazil-the-real-economy-and-markets-the-quest-for-synchronicity.md) | +1.9% | +1.0% |
| DXY | 2022-06-02 | [An Update on the Economy and Monetary Policy](https://feedsoft.ai/events/40854-an-update-on-the-economy-and-monetary-policy.md) | -0.3% | +1.9% |
| DXY | 2023-04-04 | [Lisa D Cook: The US economic outlook and monetary policy](https://feedsoft.ai/events/36300-lisa-d-cook-the-us-economic-outlook-and-monetary-policy.md) | +0.4% | +0.1% |
| DXY | 2018-12-18 | [Fed’s policy decisions have a deep impact in emerging markets - The Globe and Mail](https://feedsoft.ai/events/61747-fed-s-policy-decisions-have-a-deep-impact-in-emerging-markets-the-globe-and-mail.md) | -0.2% | -1.8% |

## Sources

- forex.com: https://www.forex.com/en/news-and-analysis/brazilian-fx-outlook-oct-30/

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