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Brazilian Industrial Production Seen Rebounding in August

LATIN AMERICA
  • Brazil's industrial production is expected to have rebounded in August, with data due at 9am local time (1300BST/0800ET). Mexican leading indicators follow (6am local time/1300BST/0800ET), with private consumption and gross fixed investment data to follow. Colombian exports data follows at 10am local (1600BST/1100ET).
  • USD Index sits just below the fresh trend higher printed overnight at 107.21, extending the medium-term uptrend posted off the July lows, with 107.993, the 21 Nov'22 high, the next upside level of note. The 10y yield clears 4.7036% to touch new multi-decade highs as markets further bed-in higher-for-longer rates policy. There have been no fresh headlines or macro data to trigger the yield move, with JOLTS labour market data next at 1500BST/1000ET.
  • US politics remains a focus after yesterday’s news that Rep Matt Gaetz (R-FL) moved a 'motion to vacate the chair' in an effort to eject Speaker of the House of Representatives Kevin McCarthy (R-CA) from office, setting the scene for a showdown.

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