Mexico

The economy remains in solid shape, with exports, IP, retail sales all holding up well despite the sharper US slowdown. GDP rose 4.6% y/y in Q1, and is tracking at a similar rate for Q2. Manufacturing PMI rose to 55.7 in June from 54.3 in…

The latest data out of China will give those expecting a soft landing pause about China's economic situation. While inflation has come down somewhat of late, so too have industrial output and capital investment. This is creating EM feedback…

FX intervention is certainly in the air this week for Latin America. Brazil stands out as the most aggressive, of course, as the central bank intervened in the forward market Friday and in the spot market Monday.

Given what we see as a basically hands off policy with regards to the exchange rate when MXN is appreciating, we see more potential upside for MXN compared to, say, BRL, where Brazilian authorities are clearly going to work against further…

The Commodity Futures Trading Commission requires futures traders to identify whether they have an underlying business interest (commercials) or if they don't (non-commercials). Here are seven take-aways from the most recent report that…

A good reception to a Spanish bill auction and a some what better than expected German ZEW investor survey helped stabilize the risk sentiment which had been battered yesterday. The major foreign currencies are mostly firmer on the day,…

Down with the Eurozone - Nouriel Roubini - Project Syndicate For the last decade, the PIIGS (Portugal, Ireland, Italy, Greece, and Spain) were the eurozone's consumers of first and last resort, spending more than their income…

The currency may well be undervalued, but a significant rise in the RMB, especially if it is countered domestically by an increase in credit at lower real rates, might actually make the global imbalances worse and, more worryingly, cause…

The dollar remains supported in choppy markets; French banks under pressure amid funding concerns. Euro zone risk premium continues to widen; Greece dances with default, tepid Italian bond auction. Banco de Mexico is likely to cut by at…

As labour costs in China rise, economists are beginning to think about replacing labour with capital, something we have already seen as a major factor in suppressing wage gains in developed economies. This is also in line with what…