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BCB Focus & BCCh Traders Surveys Highlight Docket

LATAM
  • A quiet LatAm docket to start the week places the focus on Brazil’s latest Focus survey and Chile’s central bank survey of traders.
  • Contrary to last month’s report, nonfarm payrolls growth in June saw its first miss in 15 months and was coupled with a return of downward revisions. However, both AHE growth and hours worked were stronger than expected, plus the unemployment rate was on the low side of expectations.
    • The market continued to almost fully price a 25bp hike for the July 26 FOMC decision and continues to entertain odds of one further hike beyond that.
    • Global currency markets are muted, with most major pairs respecting the post-NFP ranges. The USD Index holds close to last Friday's lows with 102.226 marking first support.
  • US Treasury Secretary Janet Yellen struck a positive but pragmatic tone after completing a high-stakes trip to China that aimed to reassure officials the US won’t hold back its biggest economic competitor. Yellen’s comments were delivered at a press conference capping a four-day visit to Beijing that she’d described as a mission to revive engagement between the two largest economies.
  • MNI (Beijing) - China's Consumer Price Index decelerated at a faster pace than expected, registering 0.0% y/y in June, compared with the 0.2% market consensus and down from May’s 0.2% print, data from the National Bureau of Statistics showed Monday.

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