LatAm Brief: Traders await US PCE inflation; Pres Lula sends Galipolo nominations to BCB to Senate

30 AUG 11:42GMT: The Dollar is little moved on Friday, trading along 101.400, ahead of the main event today that is the US PCE inflation print (12.30GMT). Participants are widely expecting the headline and core gauge to inch up slightly, though a modest climb should not change the overarching narrative that inflation in the US is falling sustainably toward the target. Of note, the disinflation in housing rent will be particularly watched, seeing as recent progress on this was slow. USD/MXN has trimmed more than half of yesterday gains, trading at an early session low of 19.6846. JP Morgan has said the MXN's three-month slide has made it a bargain for investor will to stomach the market turbulence that likely lies ahead. This, as President AMLO plans to overhaul the nation's judiciary. In Brazil, reports via the Official Gazette suggest that Pres Lula has sent the nomination of BCB Galipolo as central bank president to Senate. Senate member, Cadoso, said the hearing will likely be on hold until after the municipal elections, which will take place in October. USD/BRL jumped to a 3wk peak yday on the news (5.6622), before cooling to 5.6278 at Thur's close. Note, on the data-front, Brazil's Net Debt % of GDP unexpectedly fell to 61.9% in July vs 62.4% consensus forecast and 62.2% in June. USD/CLP pared early gains on Thursday, and will likely fall back to the earlier week's low, as trader's expectations pile that the BCCh will hold rates again next week amid rising inflationary pressures. Chile will post July Retail Sales, Commercial Activity and Industrial/Manufacturing Production (all at 14GMT).

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