Latam FX set for monthly falls; Colombia rate decision due
Updated at 1459 GMT
Colombia c.bank decision on tap
Brazil unemployment drops to second-lowest level on record
MSCI Latam stocks index off 0.4%, FX up 0.1%
By Johann M Cherian
Oct 31 (Reuters) -Most currencies in Latin America were muted on Thursday, and on track for monthly losses, while Colombia's peso was flat as investors were uncertain about the size of Colombia'sinterest rate decision expected later in the day.
Oil producer Colombia's peso COP= was little changed in choppy trading after a four-session decline. On Wednesday, the currency hit levels last reachedmore than a year ago.
Analysts predicted that Colombia's central bank would decide toeither maintain or speed up the pace of cuttingits benchmark interest rate.
Juan Perez, director of trading at Monex, said a 50 basis points cut is priced in more than a 75 bps reduction. However, the central bank could also exercise caution with a 25 bps cut ahead of theNov. 5 U.S. elections.
MSCI's index tracking Latin American stocks .MILA00000PUS lost 0.4%, while an index tracking regional currencies .MILA00000CUS edged up 0.1% against the dollar.
The indexes are on track for their biggest one-month drop since June, hurt primarily by risk averse investors ahead of a tight U.S. presidential race next week.
Some investors have increasingly bet that Republican candidate Donald Trump will win, helping to lift the dollar and U.S. Treasury yields, although he is still neck and neck with Democratic Vice President Kamala Harris in several polls.
Analysts see Trump at loggerheads with most left-leaning governments in the region and his policies on trade, security and migration are consideredinflationary and unfriendly totrading partners.
Mexico's peso MXN= edged up 0.3%, hovering near 20 to the dollar. The currency is set for declines in its fourth month out of five and has been the most sensitive to volatility in the runup to U.S. elections.
"A Harris victory would mean a continuation of the current situation and the peso could have a tremendous opportunity to strengthen because all of a sudden, Mexico is not under threat and there is no speculation about the trade partnership," Perez said.
Amid an ongoing judicial overhaul, the country's lower house of Congress approved a measure that makes changes to the constitution "unchallengeable."
Brazil's real BRL= dipped 0.2%, on track for its fifth-straight day in the red. Data showed unemployment in the region's largest economy fell in the three months through September, underscoring a robust economy and bolstering expectations for interest rate hikes.
Among equities, Brazil's Bovespa .BVSP dipped 0.1%, while Mexico's main stock index .MXX lost 0.3%.
Key Latin American stock indexes and currencies:
Latin American market prices from Reuters | ||
Equities | Latest | Daily % change |
MSCI Emerging Markets .MSCIEF | 1120.53 | -0.53 |
MSCI LatAm .MILA00000PUS | 2130.81 | -0.39 |
Brazil Bovespa .BVSP | 130531.56 | -0.08 |
Mexico IPC .MXX | 50731.67 | -0.29 |
Chile IPSA .SPIPSA | 6550.32 | closed |
Argentina Merval .MERV | 1829885.8 | -0.416 |
Colombia COLCAP .COLCAP | 1354.85 | -0.12 |
Currencies | Latest | Daily % change |
Brazil real BRL= | 5.7773 | -0.25 |
Mexico peso MXN= | 20.085 | 0.29 |
Chile peso CLP= | 961.63 | 0.01 |
Colombia peso COP= | 4408.78 | 0.04 |
Peru sol PEN= | 3.766 | -0.03 |
Argentina peso (interbank) ARS=RASL | 989 | flat |
Argentina peso (parallel) ARSB= | 1,160 | 1.69 |
LatAm FX relative performance since Mexican election https://reut.rs/4f9VF7N
Reporting by Johann M Cherian in Bengaluru; Editing by Richard Chang
Activos relacionados
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.
