Overview

• Brazil’s external accounts showed a US$4.669 billion current-account deficit in August, with a goods surplus near US$5.5 billion offset by services and primary‑income shortfalls, bringing the 12‑month gap to 3.51% of GDP.
• Net foreign direct investment reached roughly US$8.0 billion in August and US$69 billion over 12 months, highlighting the role of FDI in financing ongoing external deficits.
• The Central Bank’s Monetary Policy Report points to cooling activity and cut its 2026 GDP growth projection to 1.5%, reinforcing a cautious stance as the high Selic restrains demand.
• U.S. PCE inflation matched expectations at 0.3% month on month and 2.7% year on year, while Fed officials remained split, with Michelle Bowman signaling two more cuts this year and Thomas Barkin emphasizing balance of risks.
• Markets adjusted only modestly after the U.S. data, with the dollar near steady against the real and local rates easing at the open, as analysts also noted that recent U.S. tariff moves and related legal disputes have yet to materially dent Brazil’s export performance.