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Greenback Pressure Resumes, Peru & Colombian Growth Data, Argentina CPI

LATAM
  • The greenback is back under pressure on Tuesday, reversing Monday’s early strength and extending on last week’s significant selloff. Markets continue to take recent Fed communications into balance, with WSJ's Nick Timiraos citing Brainard in writing this morning that the Fed are likely to slow their tightening pace in December.
    • US Empire Manufacturing and PPI for October are the data highlights Tuesday. The Fed speaker slate picks up, with commentary from Fed's Harker and Cook on the docket.
  • As a result, growth proxies are outperforming early Tuesday, with AUD and NZD among the session's best performers. Both the Euro and GBP continue to trade buoyantly, with the single currency breaking notable technical hurdles along the way.
  • In LatAm, Brazil markets are closed for a national holiday, however, the data calendar is packed. Peru economic activity and Colombian GDP headline before the focus turns to the latest inflation figures from Argentina in the latter half of the session.

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