Latin American currencies strengthened on May 19 as the dollar dropped and metals rebounded, with the Brazilian real leading gains after Chinese authorities outlined plans to exit the Shanghai COVID-19 lockdown. Brazil's Economy Ministry reportedly set its 2022 growth outlook at 1.5%.
Easing Chinese lockdowns raise expectations for Chinese demand for commodities including soybeans and meal, supporting prices, while a firmer real can slightly reduce Brazilian export competitiveness.
After 213 past bearish macro events, Brazilian Real (BRL per USD) moved a median -0.2% over 5 sessions (46% higher; middle half -1.5% to +0.9%), and +0.2% over 20.
After 123 past bullish macro events, Soybeans moved a median +0.3% over 5 sessions (60% higher; middle half -1.0% to +1.8%), and -0.4% 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.