8 May 2014
Latin America EM Express: Chilean and Mexican peso rise on inflation numbers, Brazilian CPI data awaited
FXStreet (Łódź) - Mexican inflation fell to the lowest level seen in six months on dropping fruit, vegetable and electricity prices, data released on Thursday showed. Chile, where CPI numbers have also been published, saw the peso strengthening on a much higher than expected result.
Mexico's 12-Month Inflation slid to 3.5% in April from 3.76% in February and almost in line with forecasts of a 3.55% increase. Core CPI grew by 0.29%, up from 0.21%. These results boosted expectations for Mexican interest rates remaining on hold for the rest of the year.
Chile saw monthly CPI slowing down to 0.6% from 0.8%, above consensus of +0.2%. Core inflation was at 0.8%, slightly up from the previous reading of a 0.7% rise. This outcome suggests that the country's central bank will refrain from cutting rates at the upcoming meeting.
On Wednesday Brazil's industrial production data showed a decline although a less than expected. On a monthly basis the indicator dropped 0.5%, compared with the 0.4% but above forecasts of -2.5%. Year-on-year Industrial Production fell 0.9%, following a 4.4% increase and versus projections of -3%.
Technicals
The Mexican peso rose by 0.2% per dollar to 12.9446 on Thursday.
The Chilean peso rallied 1.07% against the greenback after the publication of inflation numbers.
The Brazilian real strengthened for the third running day on Thursday, up 0.1% to 2.2145 against the greenback 2.2145, ahead of the publication of inflation data on Thursday, which is expected to have accelerated in April.
On Wednesday the USD/BRL daily FXStreet Trend Index was neutral, with the OB/OS Index neutral. RSI was at 44 at the last close, and has fallen to 38 so far today. Daily 2-StDev Volatility Bandwidth was shrinking at 135 pips, with ATR (14) expanding at 225 pips. The 1D 200 SMA was at 2.3055, while the 1D 20 EMA was at 2.2385.
Mexico's 12-Month Inflation slid to 3.5% in April from 3.76% in February and almost in line with forecasts of a 3.55% increase. Core CPI grew by 0.29%, up from 0.21%. These results boosted expectations for Mexican interest rates remaining on hold for the rest of the year.
Chile saw monthly CPI slowing down to 0.6% from 0.8%, above consensus of +0.2%. Core inflation was at 0.8%, slightly up from the previous reading of a 0.7% rise. This outcome suggests that the country's central bank will refrain from cutting rates at the upcoming meeting.
On Wednesday Brazil's industrial production data showed a decline although a less than expected. On a monthly basis the indicator dropped 0.5%, compared with the 0.4% but above forecasts of -2.5%. Year-on-year Industrial Production fell 0.9%, following a 4.4% increase and versus projections of -3%.
Technicals
The Mexican peso rose by 0.2% per dollar to 12.9446 on Thursday.
The Chilean peso rallied 1.07% against the greenback after the publication of inflation numbers.
The Brazilian real strengthened for the third running day on Thursday, up 0.1% to 2.2145 against the greenback 2.2145, ahead of the publication of inflation data on Thursday, which is expected to have accelerated in April.
On Wednesday the USD/BRL daily FXStreet Trend Index was neutral, with the OB/OS Index neutral. RSI was at 44 at the last close, and has fallen to 38 so far today. Daily 2-StDev Volatility Bandwidth was shrinking at 135 pips, with ATR (14) expanding at 225 pips. The 1D 200 SMA was at 2.3055, while the 1D 20 EMA was at 2.2385.