Global sentiment took a hit overnight, as weak Chinese data and comments from the US Treasury that China needs more progress on the FX flexibility front, and that is monitoring Japan closely on the currency front have taken some support away from risk appetite. The Treasury comments regarding Japan likely had the biggest impact on LATAM FX, but the “negativity” has faded into the North American open. Besides macro‐data, US earnings season should be tracked, as a source of guidance for risk sentiment.
Venezuelan presidential election results were somewhat surprising, with Interim‐President Maduro winning the elections as expected, but early indications are that his margin of victory was significantly slimmer than anticipated, as polls had suggested he could win with a double digit lead, which was apparently only 230k votes (50.7% vs 49.1%).
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