MNI: PBOC Net Injects CNY243.37 Bln via OMO Monday

MNI: PBOC Sets Yuan Parity Higher At 7.1316 Mon; -1.56% Y/Y

CHINA PBOC CONDUCTS CNY301.57 BILLION VIA 7-DAY REVERSE REPOS MON

CHINA SETS YUAN CENTRAL PARITY AT 7.1316 MON VS 7.1270

MNI BRIEF: China Visitor Mobile Payments Surge in H1

MNI BRIEF: Turkish Inflation Expectations Steady- TEBA

MNI: BAKER HUGHES US RIG COUNT 589; OIL RIGS 482; GAS RIGS 101

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL JUL INDEX 66.4

EZ/UK Bond Supply Calendar: BoE Short APF Operation on Monday

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

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

HSBC Not Giving Up on LatAm FX

LATIN AMERICA
  • Although more clarity on geopolitics and US rates is likely needed before stabilising the recent risk off moves, now is not the time to give up on LatAm FX, according to HSBC< They add that recent events are actually likely to reinforce the relative appeal of the region's currencies compared with those of other EM’s. They cite the following reasons for this view:
    • The spike in FX volatility coupled with risks of additional supply-side inflation from higher oil prices is resulting in a cautious turn in LatAm central bank's messaging during this week's meetings of the IMF, bolstering the attractive yield differentials.
    • LatAm remains relatively isolated from global geopolitical risks in either the Middle East or East Asia.
    • Commodity disruptions should be a net positive for LatAm as higher oil prices should benefit the COP and BRL while any negative impact on the CLP should be offset by higher copper prices.
  • HSBC believe BRL's recent underperformance has been disproportionately punished by the negative fiscal news and the global risk-off trend. Brazil now has a more robust balance of payments that should support stabilization. Additionally, HSBC continue to like the UYU, which remains relatively isolated from global risks and should benefit from ongoing FDI and portfolio inflows in coming years.
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

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.