The week in Brazil should start focused on the cut in expenditures that the government should announce by Thursday; local news sources say that the government will have a meeting this Sunday to discuss a cut of up to BRL…
The week in Brazil should start focused on the cut in expenditures that the government should announce by Thursday; local news sources say that the government will have a meeting this Sunday to discuss a cut of up to BRL80bn, the largest in recent years. On the same day, the unemployment rate for April and the monthly GDP proxy for March (consensus: -0.50% m/m sa) are scheduled for release.
This data set of tighter fiscal and weak activity should increase the likelihood of the BCB reducing the pace of tightening at the next meeting to 25bp.
On Mexico, Banxico's quarterly inflation report on Tuesday should bring revised growth forecasts, as economic activity seemed weaker than expected in Q1 15.
Barclays notes:
We expect more confidence from the board that the FX pass-through will not contaminate inflation dynamics, allowing additional time for neutrality.
The growth dynamic of Q1 should be confirmed on Thursday, when the GDP data should be released; we forecast a 0.3% q/q sa expansion, from 0.7% in the previous quarter.
Finally, on Friday, there is the bi-monthly inflation reading, for which we forecast a -0.50% print.
Gold prices edged lower on Monday as stronger-than-expected U.S. nonfarm payrolls data dampened hopes for aggressive Federal Reserve rate cuts, bolstering the dollar. Spot gold slipped 0.1% to $2,686.32 an ounce, while F…
On-chain data shows BTC whales moved 10000 BTC from Crypto exchanges. This indicate accumulation of BTC by whales. Japanese public company Metaplanet buys another 1 billion yen worth of Bitcoin. According to Santiment, t…
Personal income increased by 0.2% month over month In August, which was less than the 0.4% market forecast and less than the 0.3% growth in July. For the third consecutive month, real personal disposable income increased…
