Latin America Currency Roundup: Increasingly Downbeat Outlook Across The Region
- Fitch has become more downbeat on the near-term outlook for Latin America’s major currencies. Amid a deteriorating global economic outlook and US-China trade tensions, commodity prices have declined, causing most regional currencies to underperform expectations in recent months.
- Moreover, downside risks to the forecasts are also rising given vulnerabilities in the external environment that would put selling pressure on risk assets.
- Moreover, Fitch has become bullish on the US dollar, with the unit being supported by growing risk aversion in global markets, dovish central banks globally and technical dynamics. Idiosyncratic political factors also remain significant drivers of price movement in Argentina, Brazil, and Mexico, with risks largely slanted to the downside in these markets.