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Argentina March Economic Activity Due, Broad Greenback Strength

LATAM
  • The LatAm calendar remains quiet on Tuesday with Argentina March economic activity headlining the docket. Mid-month inflation data for Mexico and Brazil will cross on Wednesday and Thursday respectively.
  • President Joe Biden and House Speaker Kevin McCarthy remained without a deal on the debt limit Monday night after another round of talks, though they called their discussions productive and vowed to keep negotiating to avert a catastrophic US default.
  • Foreshadowed by French and German PMIs this morning, the eurozone aggregate May PMIs pointed to continued strength in services, whilst manufacturing dipped deeper into contractive territory. The outperformance of services vs manufacturing was the largest divergence since 2009. The eurozone manufacturing PMI fell 1.2 points to 44.6 (3-year low), against expectations of a marginal uptick. Meanwhile services cooled by 0.8 points to 53.3, 0.2pp lower than anticipated.
  • Prelim PMI data from the US, new home sales and the Richmond Fed manufacturing index take focus going forward, with speeches scheduled from Fed's Logan and ECB's Villeroy & Nagel.

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