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Strong USD, Weak China Dictates EM Price Action Thursday

LATIN AMERICA
  • Amid the USD positive backdrop, most EM currencies are on the backfoot through the NY crossover, helping USD/MXN stabilise just above fresh YTD lows printed at 17.5353 overnight. Softer China data has weighed on base commodities, tipping iron ore, copper and silver lower by as much as 2% in intraday trade.
  • Outside of the BoE rate decision, focus rests on the US weekly jobless claims data, the April PPI read and polling data ahead of the first round of Presidential elections in Turkey due this weekend.
  • The Peru central bank rate decision is the highlight across Latam, with consensus looking for unchanged at 7.75% today. Central bank surveys continue to show economists’ inflation expectations have further increased, emphasising the need to maintain the current policy stance at this juncture.
  • Full MNI Preview including summary of sell-side views here: https://roar-assets-auto.rbl.ms/files/52830/Peru%2...

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