# Latam FX caught in virus-driven rout; Chile central bank cuts rates

> Latin American currencies fell in a virus-driven rout, and Chile's central bank cut its policy rate. The Fed cut rates by 100 basis points to near zero and pledged at least $700 billion in asset purchases, while Brent fell 10% and U.S. crude dropped below $30.

- Date: 2020-03-16 · published 2020-03-16T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/6398-latam-fx-caught-in-virus-driven-rout-chile-central-bank-cuts-rates
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

Falling crude prices and worries about Pemex's finances weigh on energy and emerging-market demand, which is bearish for oil. Global easing and currency weakness shape the trade backdrop for feed commodities.

## Read by commodity

- WTI: bearish ▼
- BRENT: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| BRENT | 2020-03-16 | 1 | -13.2% | -3.0 | Dated 2020-03-16, it reports Brent falling about 10% alongside the Fed's emergency cuts to near zero, a recession and demand-shock sentiment that coincides with the -13% move. |
| WTI | 2020-03-18 | 5 | -30.6% | -6.5 | On March 16 U.S. crude dropped below $30 as Fed emergency cuts failed to calm demand fears. |
| BRENT | 2020-03-19 | 5 | -23.0% | -4.5 | Mar 16 Brent fell 10% as the Fed's emergency cut signaled severe recession risk and demand destruction. |
| WTI | 2020-03-17 | 1 | -13.2% | -3.8 | March 16 coverage of the virus-driven rout, with US crude below $30 despite the Fed's emergency cut, shows the selling pressure carrying into March 17. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2021-01-27 | [Latam FX sinks ahead of Fed; Chile central bank seen holding rates - Markets - Business Recorder](https://feedsoft.ai/events/49445-latam-fx-sinks-ahead-of-fed-chile-central-bank-seen-holding-rates-markets.md) | +4.1% | +20.2% |
| WTI | 2022-12-15 | [Oil prices slid 2% as dollar firms and central banks hike interest rates](https://feedsoft.ai/events/38152-oil-prices-slid-2-as-dollar-firms-and-central-banks-hike-interest-rates.md) | +1.3% | +3.5% |
| WTI | 2022-11-22 | [Feedgrain Focus: Rain reignites southern inverse - Beef Central](https://feedsoft.ai/events/38801-feedgrain-focus-rain-reignites-southern-inverse-beef-central.md) | -2.1% | -4.7% |
| WTI | 2020-03-09 | [Brazil central bank to continue FX intervention as long as it takes to calm market \| Financial Post](https://feedsoft.ai/events/6408-brazil-central-bank-to-continue-fx-intervention-as-long-as-it-takes-to-calm.md) | -23.0% | -31.2% |
| WTI | 2020-02-24 | [Virus-driven risk-off move lifts yen versus dollar](https://feedsoft.ai/events/54816-virus-driven-risk-off-move-lifts-yen-versus-dollar.md) | -16.0% | -61.7% |
| BRENT | 2022-12-15 | [Oil prices slid 2% as dollar firms and central banks hike interest rates](https://feedsoft.ai/events/38152-oil-prices-slid-2-as-dollar-firms-and-central-banks-hike-interest-rates.md) | -2.2% | +1.6% |
| BRENT | 2022-11-22 | [Feedgrain Focus: Rain reignites southern inverse - Beef Central](https://feedsoft.ai/events/38801-feedgrain-focus-rain-reignites-southern-inverse-beef-central.md) | -5.2% | -8.2% |
| BRENT | 2020-02-24 | [Virus-driven risk-off move lifts yen versus dollar](https://feedsoft.ai/events/54816-virus-driven-risk-off-move-lifts-yen-versus-dollar.md) | -13.0% | -55.2% |

## Sources

- reuters.com: https://www.reuters.com/article/emerging-markets-latam/emerging-markets-latam-fx-caught-in-virus-driven-rout-chile-central-bank-cuts-rates-idUSL1N2B94N9/

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