26 May 2014
Latin America EM Express: Zuluaga wins the first round of the Colombian presidential election
FXStreet (Łódź) - Colombia held presidential elections on Sunday and exit polls suggest that Former Finance Minister Oscar Ivan Zuluaga has won in the first round with a 29.3% support, which is a blow for incumbent Juan Manuel Santos who received only a 25.7% backing. The runoff election will take place on June 15.
Both rivals for the post have similar policies, although Zuluaga calls for adopting a tougher stance against the Revolutionary Armed Forces of Colombia (FARC). In case of his victory the ongoing peace talks could be broken off.
Economic data
On Friday Brazil released Current Account data which showed a widening to a $ -8.29B deficit in April from $ -6.25B in March, above expectations of a $ -6.70B result. Foreign Direct Investment increased to $5.23B from $5.00B, below forecasts of $5.40B.
Argentina's annual preliminary Industrial Production dropped 4% in April, up from the 5.9% decrease in March and beating expectations of a 6.1% fall.
Colombia's Trade Balance numbers revealed that the $-505.6M deficit seen in March narrowed to $-276.2M in April
On Monday Mexican flash Trade Balance data showed that the $1.027B surplus recorded in March narrowed to $0.510B in April, against consensus of a shift to a $-0.758B deficit.
Technicals
The Colombian peso was little changed at 1,909.76 against the dollar on Monday.
The Brazilian real on the other hand was boosted by the successful Ukrainian election and increased rose a three week low on Monday, strengthening by 0.1% 2.2217 against the greenback.
On Friday the USD/BRL daily FXStreet Trend Index was slightly bullish and the OB/OS Index was neutral. RSI stood at 47 at the last close, and has slid to 46 so far today. Daily 2-StDev Volatility Bandwidth was expanding at 98 pips, with ATR (14) shrinking at 161 pips. The 1D 200 SMA was at 2.2999, while the 1D 20 EMA was at 2.2228.
Both rivals for the post have similar policies, although Zuluaga calls for adopting a tougher stance against the Revolutionary Armed Forces of Colombia (FARC). In case of his victory the ongoing peace talks could be broken off.
Economic data
On Friday Brazil released Current Account data which showed a widening to a $ -8.29B deficit in April from $ -6.25B in March, above expectations of a $ -6.70B result. Foreign Direct Investment increased to $5.23B from $5.00B, below forecasts of $5.40B.
Argentina's annual preliminary Industrial Production dropped 4% in April, up from the 5.9% decrease in March and beating expectations of a 6.1% fall.
Colombia's Trade Balance numbers revealed that the $-505.6M deficit seen in March narrowed to $-276.2M in April
On Monday Mexican flash Trade Balance data showed that the $1.027B surplus recorded in March narrowed to $0.510B in April, against consensus of a shift to a $-0.758B deficit.
Technicals
The Colombian peso was little changed at 1,909.76 against the dollar on Monday.
The Brazilian real on the other hand was boosted by the successful Ukrainian election and increased rose a three week low on Monday, strengthening by 0.1% 2.2217 against the greenback.
On Friday the USD/BRL daily FXStreet Trend Index was slightly bullish and the OB/OS Index was neutral. RSI stood at 47 at the last close, and has slid to 46 so far today. Daily 2-StDev Volatility Bandwidth was expanding at 98 pips, with ATR (14) shrinking at 161 pips. The 1D 200 SMA was at 2.2999, while the 1D 20 EMA was at 2.2228.