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Greenback Maintains Upward Trajectory, DXY Rises For Fourth Session

LATAM
  • The carry over from Friday's session of a firmer greenback, weaker equities has persisted for the most part on Monday, with the USD index (+0.20%) rising for a fourth consecutive session. Escalating tensions in Ukraine are keeping the USD underpinned as markets look ahead to important US inflation data on Thursday.
  • China markets have returned, with tech equity names slumping, as the US administration looks to curb technology access exports further. Aggregate China equity indices are trading resiliently though, despite a very poor Caixin services PMI print from the weekend. Rising Covid case numbers will also need to be monitored as we are now back to early September highs.
  • In LatAm, a quiet start to the week amid the US market closures for Columbus Day with just the BCB Focus Survey of note. Later in the week, Brazilian inflation data and the Chile central bank meeting take focus.

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