Forex - GOOD MORNING Latam! (FX HIGHLIGHTS BRL MXN ARS CLP COP PEN)...


 10:45 (GMT) 13 Jul

  [Forex Highlights]

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RECAP CURRENCIES, DATA AND EVENTS.

GOOD MORNING Latam! (FX HIGHLIGHTS BRL MXN ARS CLP COP PEN)... (0101-CJBQ-C01)

European FX and News:

+ The USD continued its broad advance in the European morning, EUR/USD seeing a low at 1.1610 before some modest short covering. With a limited data calendar US earnings are seen as likely to dictate sentiment into the weekend.

+ Cable pushed lower to test 1.3100 as European traders proved less sanguine than their Asia counterparts on PM May's current plight, though EUR/GBP also loath to push far from .8850 either way.
USD/JPY stretched the high to just shy of 112.80 as equities start to fade early gains, front month e-minis now negative, EUR/JPY dipping back below 131.00.

+ EUR/CHF is holding below 1.17 but USD/CHF comfortably clear of 1.00 thanks to the stronger USD tone overall.

+ Commodity currencies all weighed against the USD, AUD/USD back down below .74, NZD/USD testing .6725 before a small rebound to ease AUD/NZD down from the highs. USD/CAD reversed a look at 1.3200, the CAD just outperforming the Southern Hemisphere duo despite WTI struggling to regain the $70 handle,

+ EUR/SEK and EUR/NOK both pushing a little higher, though 10.40 and 9.50 so far both just out of reach.

Bonds and Equities:

+ Falling Gilt yields (10y -3.5bps) help boost European bond markets, 10y Bund yields off 2.5bps with BTPs outperforming as Spain, Portugal and Greece lag. UST yields down 0.5bps.

+ Equities started brightly but easing back now. FTSE +0.4% but Dax barely positive, Sep e-minis -1.75pts.

US DATA

Today June import prices and preliminary July Michigan CSI data are due, and are both worth looking at, with the latter having recently seen inflation expectations edging higher. The Fed's Monetary Policy Report to Congress will be released while moderate voter Bostic will speak.

Recap EMGE Europe

GOOD MORNING Latam! (FX HIGHLIGHTS BRL MXN ARS CLP COP PEN)... (0101-CJBQ-C03)

The rand weakened slightly at the beginning of Friday's session with the USD/ZAR temporarily climbing to 13.3948, hurt by the U.S. dollar's broad-based appreciation and lower precious metal prices. We expect the currency to stay fragile in the coming week due to the threat of further deterioration in the U.S.-China trade relations, with the USD/ZAR potentially breaking the 13.60 resistance level.

GOOD MORNING Latam! (FX HIGHLIGHTS BRL MXN ARS CLP COP PEN)... (0101-CJBQ-C02)

The ruble depreciated a bit at the start of Friday's session with the USD/RUB briefly rising to 62.3729, suffering from lower oil prices amid the broadly stronger U.S. dollar. Although we do not expect a major breakthrough at the summit of Russian President Vladimir Putin and U.S. President Donald Trump in Helsinki on Monday, we think that the ruble will strengthen in the coming week as the start of the monthly tax payment period on Monday is likely to lead to bigger FX sales by exporters, with the USD/RUB possibly falling below the 61.5478 support level.


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