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LATAM: Summary – February 03

LATAM
  • On Monday, Chile economic activity looks set to accelerate in December, following the stronger-than-expected retail sales and IP data. Elsewhere, the BCB publishes its usual Focus survey, which this week showed another substantial increase in inflation expectations. Latest PMI data in Brazil and Colombia, and Argentina tax revenues are also due.
  • In the US, data releases include the ISM Manufacturing print for January - seen keeping pace with the December reading to broadly mimic the data patterns seen in the MNI Chicago Business Barometer print from Friday. Fed's Musalem and Bostic are the central bank speakers of note.
  • Intraday vol and headline risk picked up over the weekend, as Trump set in place to invoke an emergency in order to install 25% tariffs on Canadian and Mexican imports - effective from 0001ET on Tuesday. This leaves calls with the Canadian and Mexican leaders today – a call with Trudeau is already set for Monday "morning" - as a final opportunity at which to delay or lessen the impact of trade levies.
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  • On Monday, Chile economic activity looks set to accelerate in December, following the stronger-than-expected retail sales and IP data. Elsewhere, the BCB publishes its usual Focus survey, which this week showed another substantial increase in inflation expectations. Latest PMI data in Brazil and Colombia, and Argentina tax revenues are also due.
  • In the US, data releases include the ISM Manufacturing print for January - seen keeping pace with the December reading to broadly mimic the data patterns seen in the MNI Chicago Business Barometer print from Friday. Fed's Musalem and Bostic are the central bank speakers of note.
  • Intraday vol and headline risk picked up over the weekend, as Trump set in place to invoke an emergency in order to install 25% tariffs on Canadian and Mexican imports - effective from 0001ET on Tuesday. This leaves calls with the Canadian and Mexican leaders today – a call with Trudeau is already set for Monday "morning" - as a final opportunity at which to delay or lessen the impact of trade levies.