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Mexican Mid-July Inflation Headlines Data Docket, BCCH Decision Friday

LATAM
  • Mexican mid-July inflation data kicks off the week in LatAm, followed by Chile June PPI figures. Brazil will report its latest IPCA inflation readings on Tuesday and a first rate cut from Chile’s central bank is expected this Friday. Focus outside of LatAm will inevitably be on the decisions from both the Fed and the ECB.
  • EUROZONE: Flash July Eurozone PMIs missed expectations to the downside, with manufacturing heading even deeper into contraction and the services sector decelerating more quickly. The common theme across the German, French, and Eurozone-wide readings is a slowdown in price pressures (focused largely in the manufacturing sector, with services mixed), alongside weaker demand evident across softer output, new orders, and exports. As expected, the Euro is weakening against its major counterparts with EURUSD now back below the 1.11 handle.
  • CHINA: MNI (Beijing) – As flagged earlier, the Chinese Yuan improved off the lower levels of the session following headlines from the Politburo flagging increased action on the property market in particular and signalling continued action on ensuring domestic demand. Additionally, China will take measures to boost private investment in public projects, according to Luo Guosan, director at the National Development and Reform Commission (NDRC).

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