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The Brazilian real opened lower against the dollar ahead of the Federal Reserve decision, with the dollar index near two-year lows. Markets expected the Fed to keep rates near zero and stay expansionary, while attention focused on US stimulus negotiations.
A weak dollar supports dollar-priced grains and oilseeds and makes US exports more competitive abroad. Expectations of continued easy policy keep commodity-linked currencies and feed prices supported.
stonex.comCurrencies Market Intelligence TeamJul 29, 2020After 1,637 past bearish macro events, US Dollar (Broad) moved a median -0.2% over 5 sessions (39% higher; middle half -0.6% to +0.3%), and -0.2% over 20.
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.
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.
