OctaFX | OctaFX Forex Broker
Open trading account

LatAm central banks’ activity this week – BBH

FXStreet (Edinburgh) - The research team at BBH noted this week’s rate decision by Banxico and the Chilean central bank.

Key Quotes

Banco de Mexico meets Thursday and is expected to hike rates 25 bp to 3.25%. Of the 19 analysts polled by Bloomberg, 4 see no change and 15 see a 25 bp hike to 3.25%. The weakness of the peso and official comments have fanned expectations that on the day after the Fed hikes rates, Mexico will do the same. Given that the peso's weakness has not spilled over to boost prices, the urgency to follow suit is not immediately evident. However, we believe the central bank may be extra cautious and hike rates now in order to anchor inflation expectations”.

Chile’s central bank meets Thursday and is expected to keep rates steady at 3.25%. The market is split, however. Of the 18 analysts polled by Bloomberg, 10 see no change and 8 see a 25 bp hike to 3.50%. The economy has been getting some limited traction recently, but the continued slide in copper prices will weigh on growth”.

US Dollar clings to gains near 97.70

The greenback, measured by the US Dollar Index, is now giving away part of its initial gains vs. its rivals is and returning to the 97.60 area...
Read more Previous

Gold speculators raised bullish bets for first time in 6-weeks

Speculators increased their bullish bets on Gold for the first in six weeks during the week ended December 8th, the latest data from the Commodity Futures Trading Commission showed.
Read more Next
Start livechat