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Mexico Mid-Month Inflation Headlines Data Docket Before FOMC Minutes

LATAM
  • Mexico mid-month inflation headlines the LatAm docket on Wednesday. Chile PPI and Brazil’s monthly public debt report for April are also scheduled.
  • McCarthy, Graves Signal Impasse in White House Debt Talks: Speaker Kevin McCarthy left the US Capitol late Tuesday afternoon saying the two parties had yet to reach a deal to avert a first-ever US default, and a top lieutenant said there are no more meetings planned. Republican Representative Garret Graves, one of McCarthy’s chief negotiators, suggested just hours after a two-hour meeting in the Capitol with his White House counterparts that the two sides were at a standoff.
  • The USD index is moderately firmer on the session, being led by weakness in the New Zealand dollar following the RBNZ rate decision. The bank raised rates by 25bps - as expected - but unexpectedly signalled that their tightening cycle has now concluded, resulting in NZD/USD dropping below 0.6150 for the first time since April.
  • Focus turns to central bank appearances later today. ECB's Lagarde marks the 25th anniversary of the ECB and Fed's Waller talks on the economic outlook. The FOMC minutes also cross.

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