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Brazil's real rose 0.6% after a congressional committee approved unfunded extra public spending of 145 billion reais, below the 175 billion proposed. Peru's sol fell over 2% at its session low before trading down 1.4% as Congress voted to remove President Pedro Castillo.
Political instability in Peru, a major copper and fishmeal producer, and fiscal developments in Brazil, a large soymeal and corn exporter, move the currencies that set the real cost of their exports to buyers. A weaker real tends to make Brazilian soymeal and corn cheaper for export markets.
financialpost.comReutersDec 7, 2022After 301 past bullish macro events, Brazilian Real (BRL per USD) moved a median +0.4% over 5 sessions (57% higher; middle half -1.2% to +1.7%), and +1.0% over 20.
After 73 past neutral macro events, Soybean Meal moved a median -0.3% over 5 sessions (44% higher; middle half -1.9% to +2.1%), and -1.6% 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.
