It looks like both the Euro
and the Brazilian real aren’t seeing good trajectories this week as both economies show negative news and figures. Brazil’s national economy shrank 1.5% in the first three months this year, which was down from a revised 0.4% jump during the previous quarter in 2019. The drop was the first contraction since 2016, as well as the biggest decline since early 2015. Several sectors like finance, mining, manufacturing, construction, and public administration all met significant slumps throughout the period. Although the HIS Markit manufacturing purchasing managers index saw a higher-than-estimated figure on Monday, which came in at 38.3 in May against April’s 36 low. Meanwhile, conflicts with Britain continues to affect the already failing economy in Europe. Nonetheless, Brazil’s new status as a coronavirus epicenter is expected to push its economy down against the single currency.