# Latin American currencies strengthen after weak U.S. GDP data | El Universal

> Latin American currencies strengthened on Friday after weaker-than-expected US fourth-quarter GDP growth of 1.9% annualized reduced expectations of rapid Fed rate hikes. The Brazilian real and Mexican peso each rose about 1%, while the Colombian peso gained less due to lower oil prices.

- Date: 2017-01-27 · published 2017-01-27T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/73184-latin-american-currencies-strengthen-after-weak-u-s-gdp-data-el-universal
- Commodities: [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 real reduces the competitiveness of Brazilian grain and oilseed exports, a mildly bearish factor for global soy and corn prices. Weaker US rate expectations also tend to support commodity prices broadly.

## Read by commodity

- USDBRL: bearish ▼
- USDMXN: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2022-02-01 | [Commodity strength, weaker dollar drive Latin American assets higher \| Financial Post](https://feedsoft.ai/events/42906-commodity-strength-weaker-dollar-drive-latin-american-assets-higher-financial.md) | +0.1% | -2.5% |
| USDBRL | 2022-09-12 | [Latam currencies rally as dollar weakens ahead of U.S. inflation data](https://feedsoft.ai/events/39788-latam-currencies-rally-as-dollar-weakens-ahead-of-u-s-inflation-data.md) | +2.6% | +1.2% |
| USDBRL | 2022-03-29 | [Dollar’s Strength Defied in Latin America - WSJ](https://feedsoft.ai/events/42472-dollar-s-strength-defied-in-latin-america-wsj.md) | -3.6% | +3.1% |
| USDBRL | 2023-09-18 | [Most Latin American currencies up ahead of central bank policy decisions](https://feedsoft.ai/events/34396-most-latin-american-currencies-up-ahead-of-central-bank-policy-decisions.md) | +0.9% | +3.9% |
| USDBRL | 2019-12-05 | [Latin America’s Currencies Are Back From the Brink of Collapse - Bloomberg](https://feedsoft.ai/events/55825-latin-america-s-currencies-are-back-from-the-brink-of-collapse-bloomberg.md) | -1.7% | -3.6% |

## Sources

- eluniversal.com.mx: https://www.eluniversal.com.mx/articulo/english/2017/01/27/latin-american-currencies-strengthen-after-weak-us-gdp-data/

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