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Summary - Banxico Decision and Chile GDP Data In Focus, Greenback Rises

LATAM
  • Chile Q1 current account balance and GDP data kick off the LatAm docket on Thursday before focus turns to the May Banxico decision. Analysts remain split over whether the Banxico committee will keep rates on hold or whether they will deliver a likely cycle ending 25bp hike. Argentina April trade data is also scheduled.
  • {EU}A quick reminder that the observance of Ascension Day will likely limit liquidity in European assets throughout today with large chunks of mainland Europe taking the day off, even though many of the regional markets remain open.
  • {r0}The USD is once again firmer, rising against all others in G10 early Thursday. Stock markets are on the up alongside the dollar, providing further evidence that markets see the dollar and equities firmer on any debt ceiling resolution ahead. President Biden is conducting G7-related meetings in Japan, meaning headlines may be more muted over the next few days, ahead of a planned press conference on Sunday. USD/JPY is among the more notable market movers Thursday, tipping to a new 2023 high at 137.94 having shown above the mid-March highs.

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