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USDPEN Slumps To Lowest Level Since April 2021

PERU
  • A more notable for the Peruvian Sol at today’s open as PEN benefits from the benign sentiment across global markets and joins the strong performance from LatAm peers. USDPEN has broken below the 2022 lows and may target the 2021 lows next, located around 3.5750.
  • The bullish Sol move comes despite the fact Peruvian police are mobilizing thousands of officers nationwide in an effort to identify protesters traveling to the country’s capital, as a new wave of anti-government protests looks likely to restart next week.
  • Furthermore, it is worth noting the latest central bank decision is due Thursday, where currently all 12 analysts are expecting another unchanged decision, holding the reference rate at 7.75%. However, some analysts have acknowledged that conditions for monetary easing are close to being met and the BCRP could take this opportunity to adjust forward guidance in the statement.
  • More notable economic activity data and unemployment figures are due to be released this weekend.

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