The dollar is showing a slight decrease this Thursday morning, to R$ 5.20.

At 9:07 am (Brasilia time) this Thursday (2), the commercial dollar showed a slight decrease of 0.17%, quoted at R$ 5.1990, but with a gain of 0.64% in the partial week. Yesterday (1st), the exchange rate rose 0.85%, quoted at R$ 5.2080. The DXY – an index that compares the strength of the dollar with the main global currencies – fell 0.26%. This morning, investors' attention was focused on the release of the official US employment report (payroll), referring to June. The indicator is considered one of the main benchmarks of US monetary policy and should influence expectations for the next steps of the Federal Reserve (Fed)The day before, the president of FedKevin Warsh reinforced the institution's commitment to controlling inflation, reducing expectations of monetary easing in the short term. According to the tool FedWatchof CME GroupMost of the market continues to project an interest rate hike by October, with the possibility of another increase by the end of this year. In Brazil, the main indicator of the day was… the Consumer Price Index (IPC-Fipe)The Brazilian inflation index, which advanced 0.18% in June, slowed compared to the 0.45% increase recorded in May. In the first half of the year, inflation measured by the index reached 2.11%, while over 12 months it accelerated to 3.92%, compared to 3.65% recorded in the period ending in May. In the political arena, investors continue to monitor developments regarding sanctions imposed by the US against two Brazilian citizens and three companies investigated for alleged links to the Primeiro Comando da Capital (PCC). In a statement, the National Secretariat of Justice stated that the measures may precede "even more serious actions" taken outside of traditional international cooperation mechanisms. The discussion about [the following also remains on the radar]. Proposed Amendment to the Constitution (PEC) which alters the work schedule. The president of the Senate, Davi Alcolumbre, defended the removal of the transition period foreseen in the text approved by the Chamber of Deputies for the reduction of the weekly work schedule from 44 to 40 hours. The proposal, however, has not yet begun its legislative process in the Senate.

This text was translated by machine from Brazilian Portuguese.