Latin American markets are bracing for the Fed and Banxico statements
For Latin American markets, the key external event of the week of August 17–21 will be the minutes of the U.S. Federal Reserve’s July meeting, which will be released on Wednesday, August 19, at 6:00 p.m. UTC. Investors will be watching for the Fed members’ arguments regarding the pace of potential rate cuts and any disagreements within the committee.
According to The Rio Times, expectations regarding U.S. monetary policy and the dollar’s performance remain the main external factors for regional currencies and stock markets. A stronger dollar could tighten financial conditions in the region’s countries, while a weaker dollar creates room for the Brazilian real, the Mexican peso, and the currencies of the Andean countries to strengthen.
On Tuesday, August 18, Chile and Colombia are set to release their second-quarter GDP data. Chile’s preliminary annual GDP growth rate was -0.5%, while Colombia’s was +2.2%. Peru will also release data on economic activity for June on Monday: the preliminary annual growth rate was 1.8%, and the unemployment rate was 4.9%.
For more breaking news, follow the UA.News Telegram channel.
On Thursday, August 20, the Bank of Mexico will publish the minutes of its latest monetary policy meeting. The document may give market participants insight into the regulator’s future approach to easing monetary policy. On the same day, Argentina is expected to release data on economic activity in June and its trade balance.
The global economic picture will be rounded out by inflation data from Canada, the United Kingdom, and Japan, as well as preliminary PMI business activity indices for August in the U.S., the eurozone, Germany, and the United Kingdom. On Friday, Mexico and Argentina are set to release retail sales figures.
