Governor Bernanke’s speech today, along with the Fed’s FOMC meeting minutes, should dominate price action today, with our US rates team believing that those looking for an explicit announcement of near‐term QE tapering today could be disappointed. Accordingly, we look for a near‐term reversal off the weakness we’ve seen in LATAM FX, with MXN and CLP likely to see the strongest gains.
Today’s events / releases include: Chinese HSBC flash manufacturing PMI, US housing data (MBA + existing home sales), Fed FOMC Apr‐30 meeting minutes, Mexican retail sales, IBGE IPCA‐15 CPI, Brazilian monthly current account, BCCh bi‐weekly traders survey.
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Scotiabank