Market tone is moderately softer overnight, as China released higher than anticipated CPI data, pushing European equities to post moderate losses. A theme that appears to be gaining momentum is that smaller economies are responding to lose policy by G4, by in turn cuting their own rates to curb monetary policy, with Korea being the last to join the club overnight. In LATAM FX the big news overnight was the upgrade by Fitch, which pushed USD/MXN to break 12.0, but the cross appears to be consolidating now.
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Scotiabank