Equity markets have traded with a positive tone overnight, as European equities (+0.1% to +1.0%) head higher despite weak Q1 GDP for the Eurozone. However, in FX markets the tone remains one of USD strength as the stronger US economy is seen as a sign that QE could be tapered. The stronger USD move has led oil (‐1.2%) and copper (‐1.6%) to both have a very weak outing which suggests a shaky open for LATAM FX.
Today’s light data/events calendar includes: MBA mortgage applications, Empire manufacturing index, US TIC flows, US industrial production, Mexican ANTAD same store sales, Brazilian retail sales, Peruvian unemployment and monthly economic activity index.
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Scotiabank