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Greenback Modestly Softer, Local Holidays In Mexico & Brazil

LATAM
  • The greenback is modestly softer, but well within recent ranges, ahead of the Wednesday Fed decision, with markets looking beyond a likely 75bps rate hike today for any guidance on whether a slowing of rate hikes could come as soon as December. Markets are partially pricing such an eventuality, with a roughly 50/50 split in pricing for a 50bps vs. 75bps hike at the final meeting of the year. The USD Index continues to oscillate on either side of the 50-dma at 111.05.
  • Local holidays on Wednesday for both Mexico and Brazil. Chile and Peru return from their respective holidays. The focus for the region will be on Chile economic activity (Imacec) which is expected to contract for September as well as the BCCh traders survey.

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