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Summary – June 14

LATAM
  • Brazil economic activity data for April will be published on Friday, followed by Colombia April industrial production and retail sales. Also in Colombia, BanRep will release its latest economists survey, while the government will publish its Medium-Term Fiscal Framework at 1700BST(1200ET).
  • In the US, import/export price indices cross later, ahead of the prelim University of Michigan sentiment survey. Markets may be particularly sensitive to any unexpected step lower in inflation expectations as part of this release, a weak number would add to the dovish pressure stemming from the PPI, CPI prints earlier in the week.
  • Global News:
    • JAPAN (MNI) – The BoJ board on Friday kept the unsecured overnight call loan rate in a range of between zero percent and 0.1% but decided to reduce the scale of Japanese government bond buying. Policymakers will decide on a more detailed plan for the reduction of its purchase amounts over the next one to two years or so at the July 30-31 meeting. For now, the BOJ decided to maintain its JGB buying at the same JPY6 trillion level decided on at the March meeting.
    • ISRAEL – Israel was reported to have stepped up missile and artillery strikes in southern Gaza while also hitting Hezbollah military targets in Lebanon. Hezbollah replied on Thursday to Israeli airstrikes in Lebanon with what the Israeli military called Hezbollah’s most serious rocket and drone assault in more than eight months of hostilities.
    • EU – The ECB can continue to lower interest rates broadly how the market expects if inflation keeps easing as envisaged, ECB policymaker Martins Kazaks told Reuters on Friday. Kazaks said inflation would be bumpy and move sideways this year but he continued to believe that it was on its way to the ECB's 2% target next year, justifying more cuts provided that the data continued to come in as the central bank expects.

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