MNI BRIEF: China State Planner To Increase Trade-in Support

MNI China Daily Summary: Thursday, July 25

MNI BRIEF: Japan Govt Keeps Econ View, Cuts Exports

MNI: PBOC Conducts CNY200 Bln via MLF Thurs; Rate Cut

MNI: PBOC Sets Yuan Parity Lower At 7.1321 Thurs; -1.92% Y/Y

CHINA PBOC CONDUCTS CNY235.1 BILLION VIA 7-DAY REVERSE REPOS THURS

Core Goods Pipeline Pressures Pick Up On 3m/3m Basis

Aircraft-Led Durables Collapse Masks Rebound In Core Orders

MNI: BELGIUM JUL BNB BUSINESS SURVEY -12.3

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

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

Higher US Yields Weighing on Regional Currencies Post US Data

LATAM
BulletEM BulletEmerging Market NewsHomepage
  • A firmer-than-expected Q1 employment cost reading provides the latest ‘hawkish’ input for FOMC-dated OIS, leaving ~33bp of cuts priced through ’24 vs. ~35bp pre-release. The higher US yields are underpinning Tuesday’s greenback strength, noticeably weighing on LatAm currencies to start the session.
  • As such, USDMXN rose back above 17.00 and stands in moderate positive territory, although the trend so far this week has seen a gradual move lower as last week’s spike in volatility settles. USDBRL and USDCLP are outperforming, both rising 0.70.
  • As a reminder, the latest pullback for USDBRL had been considered technically corrective and today’s bounce takes us back above the 20-day EMA. The strong impulsive nature of the latest rally since mid-April signals scope for a climb towards 5.3330, 76.4% of the Nov 11 ‘23 - Jul 28 ‘23 bear leg.
134 words

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.
  • A firmer-than-expected Q1 employment cost reading provides the latest ‘hawkish’ input for FOMC-dated OIS, leaving ~33bp of cuts priced through ’24 vs. ~35bp pre-release. The higher US yields are underpinning Tuesday’s greenback strength, noticeably weighing on LatAm currencies to start the session.
  • As such, USDMXN rose back above 17.00 and stands in moderate positive territory, although the trend so far this week has seen a gradual move lower as last week’s spike in volatility settles. USDBRL and USDCLP are outperforming, both rising 0.70.
  • As a reminder, the latest pullback for USDBRL had been considered technically corrective and today’s bounce takes us back above the 20-day EMA. The strong impulsive nature of the latest rally since mid-April signals scope for a climb towards 5.3330, 76.4% of the Nov 11 ‘23 - Jul 28 ‘23 bear leg.