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Greenback Continues Weakening Trend From Friday, Banxico & BCRP This Week

LATAM
  • Despite a gap higher at the open, the greenback has resumed its weakening bias that ensued following the US employment release on Friday. The USD index (-0.37%) has traded through last week’s lows and now resides roughly 2% below the post-NFP high. Price action has been extending below the 50-day moving average which intersected at 111.21 today.
  • Datapoints are few and far between Monday, keeping focus instead on the central bank speaker slate. Fed's Collins, Mester and Barkin are all due to speak. This week, however, focus rests on the US inflation release due Thursday. Consensus looks for 0,6% M/M and 7.9% Y/Y.
  • Highlights this week in LatAm include inflation prints from Chile, Mexico and Brazil as well as central bank decisions from both Mexico and Peru.

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