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Brazil's real rose more than 1% on December 8 ahead of a widely expected 150 basis point central bank rate hike to 9.25%. Retail sales fell in October for a third straight month as inflation eroded consumer purchasing power.
The real remains down about 12% from its 2021 peak.
A firmer real and tighter Brazilian policy slow domestic consumption and can make Brazilian dollar-priced exports less competitive, with limited direct effect on feed commodity prices.
financialpost.comReutersDec 8, 2021After 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.
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.
