Brazilian Real Futures Market News and Commentary
The dollar index (DXY00) on Friday fell by -0.21%. The dollar Friday tumbled to a 5-month low. A slide in T-note yields Friday undercut the dollar. Friday’s stronger-than-expected U.S Nov payroll report initially pushed bond yields and the dollar higher. However, T-note yields moved lower for the remainder of the day and weighed on the dollar. Also, the Chinese yuan rallied to a 2-1/2 week high Friday and weighed on the dollar as China continues to ease Covid restrictions, bolstering optimism about an economic reopening.
Friday’s U.S. Nov payroll report was better-than-expected and bullish for the dollar. Nov nonfarm payrolls rose +263,000, stronger than expectations of +200,000. Also, the Nov unemployment rate was unchanged at 3.7%, right on expectations. In addition, Nov average hourly earnings eased to +5.1% y/y from +5.6% y/y in Oct but were still higher than expectations of +4.6% y/y.
Fed comments Friday were hawkish for Fed policy and bullish for the dollar.... Read more