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LATAM: Summary – March 04

LATAM
  • President Sheinbaum’s daily press conference on Tuesday will be eagerly awaited to clarify Mexico’s response to the US government’s decision to implement tariffs overnight. On the data front, Colombia exports are seen falling to $3.86bn in January, from $4.47bn, while Colombia Q4 current account and Mexico formal job creation may also cross.
  • In the US, the data schedule is quiet, with no tier one releases set. This keeps the focus on developments from the White House and in particular Trump's State of the Union address in front of a joint session of Congress for direction. Trump is expected to touch on all the major themes of his second term, from geopolitics to tariffs to tax policy and the debt limit.
  • The stagflationary bias to sell USD has only picked up on the confirmation of tariffs against Canadian, Mexican and Chinese imports this morning. The news looked well-priced in as equities are somewhat stable, although holding almost the entirety of yesterday's downdraft - particularly for the e-mini S&P. Haven currencies are outperforming, with both JPY and CHF firmer against all others.
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  • President Sheinbaum’s daily press conference on Tuesday will be eagerly awaited to clarify Mexico’s response to the US government’s decision to implement tariffs overnight. On the data front, Colombia exports are seen falling to $3.86bn in January, from $4.47bn, while Colombia Q4 current account and Mexico formal job creation may also cross.
  • In the US, the data schedule is quiet, with no tier one releases set. This keeps the focus on developments from the White House and in particular Trump's State of the Union address in front of a joint session of Congress for direction. Trump is expected to touch on all the major themes of his second term, from geopolitics to tariffs to tax policy and the debt limit.
  • The stagflationary bias to sell USD has only picked up on the confirmation of tariffs against Canadian, Mexican and Chinese imports this morning. The news looked well-priced in as equities are somewhat stable, although holding almost the entirety of yesterday's downdraft - particularly for the e-mini S&P. Haven currencies are outperforming, with both JPY and CHF firmer against all others.