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Mexico Mid-Month CPI and Banxico Minutes

LATAM
  • Today’s LatAm docket includes Mexico bi-weekly CPI numbers and Banxico minutes. Chile’s PPI and Argentine retail sales figures are also expected today. For global markets, the schedule is light and includes U.S. jobless claims and durable goods orders for July. The main global event of the week is Chair Powell’s speech tomorrow at Jackson Hole, where analysts expect him to deliver a hawkish-on-balance message to emphasize the battle against inflation is not over yet.
  • BRICS countries have reached agreement on the bloc's expansion, inviting six nations, namely: Argentina, Egypt, Iran, Ethiopia, Saudi Arabia, and the United Arab Emirates. The membership of the new countries is expected to become effective 1 Jan 2024.
  • MNI (Beijing) The People’s Bank of China faces a tough job to defend the yuan at 7.30 to the dollar as the Chinese economy remains sluggish and the Federal Reserve keeps monetary policy tight, policy advisors and FX traders told MNI, though they added that despite possible further short-term weakness the currency could still strengthen towards the end of the year.
  • China will stop all seafood imports from Japan, escalating tensions between the two nations as Japan begins a contentious release of treated wastewater from the wrecked Fukushima nuclear power plant (BBG).
  • Wagner mercenary chief Yevgeny Prigozhin is presumed dead. Russia’s aviation authority said he was in a deadly plane crash on Wednesday that killed all 10 aboard. The crash took place exactly two months after Prigozhin’s rebellion. Local newspaper Meduza reports that his death is unlikely to impact internal Russian politics as his popularity has already waned.

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