MNI BRIEF: China Passenger Car Sales Up In November Y/Y

MNI China Daily Summary: Monday, December 9

MNI BRIEF: China To Strengthen Policy Easing In 2025: Poliburo

MNI BRIEF: China Nov CPI Slows To 5-Month Low Of 0.2% Y/Y

MNI: PBOC Sets Yuan Parity Higher At 7.1870 Mon; -1.39% Y/Y

MNI: China CFETS Yuan Index Down 0.36% In Week of Dec 6

MNI JAPAN Q3 GDP REV +0.3% Q/Q; PRELIM +0.2%; MEDIAN +0.2%

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT PRELIMINARY DEC INDEX 74.0

CANADA NOV IVEY PURCHASING MANAGERS INDEX 52.3 SA

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Goldman Sachs Recommend Staying Long FX-Unhedged 3Y Mexican MBONOs

LATAM
  • Monetary policy decisions in Mexico have so far been steered more clearly by the external backdrop and Fed policy than by domestic inflation developments. With Banxico likely to board the easing train soon, GS think it makes sense for investors to hold the 'double long' in Mexico, with the rates and FX exposures complementing each other through the early innings of a cautious Banxico cutting cycle (GS recommend staying long FX-unhedged 3Y Mexican MBONOs).
  • In Brazil, with a more benign domestic growth backdrop and a steady COPOM cutting cycle, which has allowed real rates to remain elevated and FX carry constant, GS think domestic factors are supportive of BRL.
  • Overall, Goldman believe this carries an important lesson for the upcoming EM and G10 cutting cycles: while currently rates moves are highly correlated across regions, once we get closer to the respective countries’ first rate cuts, there should be more scope for divergence across rates and currency markets.
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.