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Stronger-than-expected US economic data on August 29, 2024 reduced expectations for a large Federal Reserve rate cut, and the dollar index rose for a second session. MSCI's Latin American currency gauge fell about 1.5% and its stock gauge about 1.7%, with Brazil's real and Mexico's peso each down roughly 1%.
Market odds for a 50-basis-point September cut fell to 32% from 38%.
A firmer dollar and fewer expected Fed cuts raise the cost of dollar-priced imports and tighten financial conditions for emerging markets, which can weigh on Brazilian and Mexican currencies that feed-ingredient exporters depend on for purchasing power.
finimize.comFinimize NewsroomAug 30, 2024After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
After 301 past bullish macro events, Brazilian Real (BRL per USD) moved a median +0.4% over 5 sessions (57% higher; middle half -1.2% to +1.7%), and +1.0% over 20.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
