Key Facts
The dollar is sliding against every major Latin American currency this morning, extending Thursday’s session where the real and Mexican peso both strengthened, as traders price in a more cautious Federal Reserve.
Brazil’s government will publish critical fiscal data at 11:30 am local time, including the primary budget balance and debt-to-GDP ratio, which will test the recent rally in domestic assets if the numbers miss expectations.
Copper and oil prices are holding steady in the overnight tape, lending support to the Chilean peso and Colombian peso ahead of a data-heavy session that includes retail sales and an interest rate decision in Bogotá.
The Bank of Japan left its policy rate unchanged overnight, removing a potential volatility trigger for carry trades and keeping the mood in emerging-market currencies relatively calm.
