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Busy Data Docket Headlined by Brazil & Chile Growth Data

LATAM
  • A busy LatAm schedule on Thursday which kicks off with Brazil’s Q1 GDP and Chile Economic Activity for April. Peru CPI, Banxico minutes and Brazil May Trade Balance rounds off the docket.
  • Debt-Limit Deal Wins House Passage, Easing US Default Concerns -- The House passed debt-limit legislation forged by President Joe Biden and Speaker Kevin McCarthy that would impose restraints on government spending through the 2024 election and avert a destabilizing US default.
  • Slowing Eurozone Inflation Gives Ammo To ECB Doves -- Eurozone inflation slowed sharply in May, preliminary data from Eurostat showed, with the headline rate dipping to 6.1% from 7.0% in April. Core inflation slowed more than expected by analysts, offering encouragement for the doves on the ECB looking to slow the speed of policy tightening in coming months.
  • The greenback is moderately softer heading into US hours, with the USD Index continuing to pullback from yesterday's cycle high of 104.70. Focus shifts to a deluge of US data - as markets look to gauge the condition of the jobs market ahead of NFP Friday. ADP Employment Change, weekly jobless claims and the May Manufacturing ISM are all due - with focus on the latter after Wednesday's poor MNI Chicago PMI release.

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