
The dollar and Brazil’s Ibovespa rose as investors assessed US payroll growth of 165,000, more than twice economists’ forecast, and an unemployment rate that fell to 4.1%. The stronger figures increased market expectations of another Federal Reserve rate hike, while investors also watched Brazil’s fiscal-policy outlook.
Expectations of higher US rates can strengthen the dollar against the real, raising Brazilian buyers’ costs for imported feed inputs. The unexpectedly strong employment report is a meaningful currency driver.
After 53 past bullish report events, US Dollar (Broad) moved a median +0.1% over 5 sessions (51% higher; middle half -0.4% to +0.5%), and +0.5% over 20.
After 40 past report events, Brazilian Real (BRL per USD) moved a median -0.1% over 5 sessions (48% higher; middle half -1.3% to +1.3%), 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.