LatAm Brief: Dollar slumps to a 1-wk low

13 SEPT 11:26GMT: The DXY slipped to a 1-wk low of 101.195 after late yesterday, ex-Fed member Dudley said he sees a case for a 50bps cut in rates in Sep. The WSJ ran an article suggesting the Fed has a dilemma regarding whether they should start big or small on rate cuts & indicated that a 50bps reduction next week is a distinct possibility. UST yields has been tightening across the board and USD/LatAms may be softer at the LatAm open on Friday. USD/MXN is softer, falling to a 2.5-wk low of 19.4072 after late yday, Banxico's Salcedo expressed that Mexico's labour economy remained strong but showed signs of moderating in 2Q24. Adding that economic activity in all regions was sluggish in 2Q, but the south showed higher levels of activity (via Bbg). USD/CLP may be softer at the open owing to the dollar weakness. USD/BRL is also expected to be softer at the open condsidering that the BCB is gearing up to hike rates next week. Fitch Ratings analyst Shetty expressed that Brazil's high govt spending keeps uncertainties elevated, and public debt is likely to rise. Still to come in LatAm is Brazil's Economic Activity (12GMT), and in the US Import/Export price data (12GMT) and Uni of Michigan sentiment (14GMT).

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