Selic on Copom radar and US payroll divide attention in short week
All Souls' Day shortens the week, and the Selic decision on Wednesday and the American employment report on Friday focus attention
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM SEU DINHEIRO · 2 MIN
A week shortened by the All Souls' Day holiday will focus the attention of those investing in Brazil. On Wednesday, November 4, at 6:30 pm, Copom, the Central Bank's monetary policy committee, announces its decision on the Selic, according to Money Times. On Friday, November 6, the market turns its eyes to the payroll, the United States employment report.
According to Seu Dinheiro, the week begins shortly after the end of the Brazilian elections, but the economic agenda gains its own weight. Monday, November 2nd, is the All Souls' Day holiday in the country, which makes the week shorter for Brazilian investors.
The center of coverage is Selic. The Seu Dinheiro report asks whether the rate drop is in sight as a central question. The statement accompanying the decision should provide signals about the next steps of monetary policy, and the collegiate evaluates inflation, activity and expectations.
The calendar brings together two major events just a few days apart. When observing the Copom and the payroll in the same week, Brazilian investors need to separate what comes from domestic interest policy from what comes from the external scenario, especially from the United States.
In line with the fiscal responsibility that this newspaper defends, reading the statement requires extra attention. The credibility of monetary policy depends on inflation converging towards the target, and this balance becomes more difficult when public accounts put pressure on demand. It is this background that the market must observe.
What changes for the investor
According to Seu Dinheiro, Copom's decision affects the stock exchange, exchange rate and fixed income, the three markets that most feel the change in interest rates. With the American payroll coming soon after, the week tends to require investors to read two scenarios at the same time. It is worth following the Copom statement paying attention to what it says about inflation, activity and expectations, and not just the decision itself. This article does not provide a purchase or sale recommendation, nor price projections.
Automatically translated from Portuguese.
