# Political headwinds continue to drive LatAm FX uncertainty - Euromoney

> Latin American currencies face uncertainty after Mexico's election results and Brazil's president comments on fiscal consolidation. The Mexican peso has depreciated, with USD/MXN up over 3% in a week, while the Brazilian real has also weakened in the second half of August despite expected Fed rate cuts.

- Date: 2024-08-30 · published 2024-08-30T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/29019-political-headwinds-continue-to-drive-latam-fx-uncertainty-euromoney
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Weaker Mexican and Brazilian currencies make their grain, meal and feed imports costlier in local terms and shift export competitiveness, influencing demand for US corn and soymeal in the region.

## Read by commodity

- USDBRL: bullish ▲
- USDMXN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2020-05-25 | [USD/BRL: Political headwinds facing the real - CIBC - Forex Crunch](https://feedsoft.ai/events/7444-usd-brl-political-headwinds-facing-the-real-cibc-forex-crunch.md) | -3.5% | -6.2% |
| USDBRL | 2020-06-10 | [Latam stocks, FX retreat as Fed points to continued stimulus](https://feedsoft.ai/events/7612-latam-stocks-fx-retreat-as-fed-points-to-continued-stimulus.md) | +5.3% | +9.4% |
| USDBRL | 2020-03-06 | [Brazil: Covid-19’s waves begin to wash up on LatAm’s shores - Euromoney](https://feedsoft.ai/events/9275-brazil-covid-19-s-waves-begin-to-wash-up-on-latam-s-shores-euromoney.md) | +4.4% | +13.1% |
| USDBRL | 2018-04-24 | [Brazil FX: What’s driving the BRL’s underperformance? - Euromoney](https://feedsoft.ai/events/65703-brazil-fx-what-s-driving-the-brl-s-underperformance-euromoney.md) | +1.1% | +7.6% |
| USDBRL | 2018-05-15 | [Brazil's real continues its slump amid election uncertainty \| AP News](https://feedsoft.ai/events/65228-brazil-s-real-continues-its-slump-amid-election-uncertainty-ap-news.md) | +2.4% | +1.5% |

## Sources

- euromoney.com: https://www.euromoney.com/article/2dp2m2rmzz8b68e9hotfk/foreign-exchange/political-headwinds-continue-to-drive-latam-fx-uncertainty/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.