# Latin American Markets Take A Hit As US Data Shifts Fed Expectations - Finimize

> 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%.

- Date: 2024-08-30 · published 2024-08-30T12:00:00.000Z
- Category: macro · region Latin America · magnitude low
- Page: https://feedsoft.ai/events/29083-latin-american-markets-take-a-hit-as-us-data-shifts-fed-expectations-finimize
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

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.

## Read by commodity

- DXY: bullish ▲
- USDBRL: bullish ▲
- USDMXN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2026-04-29 | [Latin American Markets Wait On The Fed As The Dollar Gains - Finimize](https://feedsoft.ai/events/19924-latin-american-markets-wait-on-the-fed-as-the-dollar-gains-finimize.md) | -0.1% | +0.3% |
| DXY | 2026-08-26 | [U.S. data buoys dollar as Fed hike expectations nudged higher](https://feedsoft.ai/events/18082-u-s-data-buoys-dollar-as-fed-hike-expectations-nudged-higher.md) | +0.4% | +1.6% |
| DXY | 2023-06-29 | [Dollar index hits two-week high as data boosts Fed hike expectations](https://feedsoft.ai/events/35661-dollar-index-hits-two-week-high-as-data-boosts-fed-hike-expectations.md) | +0.4% | -1.2% |
| DXY | 2022-06-28 | [Euro dips as markets manage expectations of ECB rate hikes \| Reuters](https://feedsoft.ai/events/41157-euro-dips-as-markets-manage-expectations-of-ecb-rate-hikes-reuters.md) | +2.0% | +2.2% |
| DXY | 2022-06-20 | [US dollar to remain resilient amid the re-pricing higher in Fed's rate expectations – ING — Octa](https://feedsoft.ai/events/41145-us-dollar-to-remain-resilient-amid-the-re-pricing-higher-in-fed-s-rate.md) | -0.9% | +1.0% |
| USDBRL | 2024-10-30 | [Latin American Currencies Dip As Mexican Peso Hits Two-Year Low - Finimize](https://feedsoft.ai/events/28093-latin-american-currencies-dip-as-mexican-peso-hits-two-year-low-finimize.md) | +0.8% | +2.6% |
| USDBRL | 2022-12-27 | [EMERGING MARKETS-Brazilian real leads Latin American FX down in thin holiday trading](https://feedsoft.ai/events/38431-emerging-markets-brazilian-real-leads-latin-american-fx-down-in-thin-holiday.md) | +5.6% | -0.9% |
| USDBRL | 2016-11-09 | [Brazil takes a hit as Trump elected US president - BNamericas](https://feedsoft.ai/events/5469-brazil-takes-a-hit-as-trump-elected-us-president-bnamericas.md) | +7.5% | +6.3% |

## Sources

- finimize.com: https://finimize.com/content/latin-american-markets-take-a-hit-as-us-data-shifts-fed-expectations

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