The US dollar is facing downward pressure as key economic data releases and speeches from Federal Reserve officials, including Chairman Jerome Powell, influence monetary policy expectations. This week's economic reports could increase market volatility, with the dollar already weakening against major currencies. Federal Reserve officials may offer insights into future interest rate trajectories.
In Brazil, Moody's Ratings downgraded the country's outlook from positive to stable, citing a reduced likelihood of improvement in its credit profile. The agency pointed to slower-than-expected progress in addressing spending rigidity and building credibility around fiscal policy. The Ministry of Finance reaffirmed its commitment to fiscal improvements and structural reforms. Meanwhile, the Ibovespa Futuro index opened higher, driven by rising oil prices following OPEC+'s decision to maintain its current production increase pace.
Elsewhere, Asian and European steel stocks declined following President Trump's threat to double tariffs on imported steel and aluminum. Trump announced the US will double its current tariff rate on steel and aluminium imports from 25% to 50%, starting on Wednesday. Christopher Waller, a Fed director, indicated that interest rate cuts remain possible this year despite potential tariff-related price pressures.