
BNY analysts say Latin American carry trades are increasingly vulnerable as realized volatility rises and G10 rates drift higher. They note selling pressure in the Colombian peso and Chilean peso, and weak buying momentum in the Brazilian real.
Brazil and Mexico central banks are expected to hold policy this week.
Currency weakness in Latin America can make regional exports cheaper for buyers while raising feed input costs for importers, and it can shift soybean and meal export flows.
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.
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.