http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/http://www.fxstreet.com/fundamental/http://mediaserver.fxstreet.com/images/fxstreet-provider-logo1-en.gif7http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2012-01-23.htmlThe monetary authorities in Brazil and Mexico maintained their monetary policies, in both cases in line with market expectations. In the case of Brazil there was a cut of 50 basis points, leaving the SELIC at 10.5%, while in Mexico the rate remained at 4.5%. At the same time, the data on economic activity in Brazil, Colombia and Peru confirm the strength of domestic demand. In the case of Colombia, this is also reflected in the indicators of confidence. Currencies in emerging markets and LatamMon, 23 Jan 2012 09:22:39 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2012-01-23.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2012-01-17.htmlThe inflationary surprise in Mexico follows those last week in Chile and Colombia, thus it freezes the enthusiasm to reduce interest rate. This fact was confirmed by the decision of the Central Bank of Peru where interest rate remains unchanged. However, the exception was Chile where the Central Bank reduced interest rate by 25 bp, a decision in line with the Monetary Policy Report presented last week. Currency gains reflect improvements in the fundamentals and reduced risk With more liquidityTue, 17 Jan 2012 07:10:38 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2012-01-17.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2012-01-09.htmlMonthly Inflation in December was higher than expected in Chile and Colombia, meanwhile in Peru and Brazil figures were in line with expectations. However, annual inflation for these countries is in the upper region of target ranges. Latam FX: limited movements As the week progressed, the markets and Latam currencies lost steam after an outstanding start to the year. Even so, there are signs of a significant resistance in currencies in the region to more negative news from Europe at the startMon, 09 Jan 2012 07:35:32 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2012-01-09.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-11-14.htmlThe indicators of domestic demand have remained stable, but the new inflation data have again provided an upward surprise (Chile and Colombia), in line with the figures last week in Mexico. Falls in Latin American asset markets in the face of global risk aversion, but with a better relative performance than advanced markets The lack of forceful decisions continues to feed fears of a vicious circle of sovereign debt affecting growth that could lead to contagion to other parts of the zone.Mon, 14 Nov 2011 08:09:15 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-11-14.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-09-26.htmlAlthough employment and credit data have not shown the slowdown in domestic demand we expected, the regional macroeconomic scenario is changing quickly in response to international economic turmoil. Falling share prices and depreciating currencies should hit confidence, and if the situation continues, they will end up affecting consumption and investment. In this context, attention will be focused on the foreign-exchange markets and any actions by central banks to increase dollar liquidity.Mon, 26 Sep 2011 13:05:31 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-09-26.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-09-16.htmlThis week's figures did not show signs of the expected economic slowdown, particularly in the case of Brazil, where expectations now focus on the current account and unemployment data. In Argentina, where there is some pressure on the foreign-exchange market, the presidential proposal for the 2012 budget law has taken on particular importance, both in terms of the planned deficit and the composition of its financing. Moderation of EU risk is passed on to Latin American stock markets, but theFri, 16 Sep 2011 15:42:34 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-09-16.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-09-05.htmlThe deterioration of global growth expectations has reduced concerns about inflation and changed the focus of monetary policy, as shown by the surprising cut in the SELIC rate. This week inflation figures in Argentina (unofficial), Chile and Venezuela could provide further clues in this respect, in addition to the IPOM in Chile, and thus stimulate attention on interest-rate decisions and messages from the central banks of Mexico and Peru. The U.S. and the EU continue to generate highMon, 05 Sep 2011 07:36:07 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-09-05.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-07-19.htmlThe Central Bank of Peru tried to limit rises in the exchange rate by buying USD 94 million over the week, while in Brazil changes were announced to the bank reserve requirements linked to short dollar positions. The Central Bank of Chile maintained the monetary policy rate at 5.25%. In Mexico, there was a positive surprise in industrial output in May. The U.S. and the EU generate high volatility in global markets Concerns regarding potential contagion from the situation of Greece, PortugalTue, 19 Jul 2011 06:13:51 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-07-19.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-07-05.htmlGrowth figures in Mexico and Chile show that these economies are slowing; in the case of Mexico mainly due to external factors, but also because of contraction in public investment. In Peru public investment has fallen to cut public expenditure, while in Brazil the strength of the labor market, credit and greater concern over inflationary risk all suggest an increase of 25 bps in the SELIC. A positive week for risk assets: currencies and stock market indices close up in Latin America TheTue, 05 Jul 2011 13:49:39 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-07-05.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-06-28.htmlA number of indicators suggest that domestic demand continues to grow strongly and is boosting growth in Argentina, Colombia, Mexico and Peru. Paradoxically, inflation is either not rising or surprisingly even falling (Chile and Mexico this week), although there are worrying signs in the Brazilian labor market. In Argentina, President Cristina Kirchner has announced her decision to seek re-election. Risk asset sales impact Latin American currencies following the Fed statements Although chancesTue, 28 Jun 2011 14:12:14 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-06-28.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-06-20.htmlThe central banks of Chile and Brazil slowed the rate of increase of their interest rates to 25 bps (5.25% and 12.25% respectively), signalling that they are close to the start of a pause. Meanwhile, various indicators point to high rates of growth in Peru and Colombia, and a slowdown in industrial output in Mexico, which can in part be explained by problems with essential supplies from Japan. Prolonged risk aversion due to global cyclical and sovereign factors in Europe, and volatility willMon, 20 Jun 2011 07:15:55 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-06-20.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-06-06.htmlEconomic growth figures for 1Q11 and advance indicators for April suggest there has been a moderation in the region over the last few months. Chile and Colombia have seen their unemployment rates fall in April. Argentina and Brazil have improved their fiscal balances, due to public spending control, also combined with increased revenues. The Central Bank of Colombia once more increased its reference rate in line with expectations and continues with its dollar purchase program. Finally, a weekMon, 06 Jun 2011 06:56:23 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-06-06.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-05-30.htmlFigures for economic activity and credit in Argentina and Peru confirm that their economies are still growing fast. In Argentina and Brazil, imports were up again in April, while unemployment rates kept falling. The same is not true in Mexico (where the fall in inflation in the first half of May was a surprise) and, the Central Bank has maintained its benchmark rate at 4.5%. Finally, uncertainty remains regarding the elections in Peru, causing major falls in business confidence surveys..Mon, 30 May 2011 07:03:46 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-05-30.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-05-23.htmlInitial economic figures for 1Q11 continue to show better than expected growth in Chile and Venezuela, and also in Mexico, although with a slight slowdown on previous months in this case. Increased exports have offset buoyant imports and ensured positive trade balances in the first quarter in Chile, Colombia and Venezuela. Meanwhile, the latest poll in Peru showed no clear front runner. The performance of Latin American currencies remains mixed; corporate issuance begins to gather pace LatinMon, 23 May 2011 06:27:09 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-05-23.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-05-16.htmlEconomic growth continues strong in South America, as reflected in figures from Brazil, Colombia and Peru, prompting the central banks to adopt new measures. In Uruguay the deposit reserve requirements were raised, while in Chile and Peru benchmark interest rates rose by 50 and 25 bps, respectively. In Peru, the latest polls show that Fujimori is winning supporters against Humala. The Brazilian Senate approved an increased payment to Paraguay for surplus energy produced by the Itaipu dam.Mon, 16 May 2011 06:04:13 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-05-16.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-05-09.htmlThe high-frequency indicators in Brazil and Chile once more showed strong growth in March. Inflation figures for April show a mixed picture, with lower than expected readings in Venezuela, Colombia and Chile, in line with expectations in Brazil and above expectations in Peru. The Central Bank of Colombia announced the purchase of foreign currencies for USD 1.2 billion in 2011. Asset prices weakened in the region by global factors: economic activity in the U.S., monetary policy in Europe andMon, 09 May 2011 07:24:19 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-05-09.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-05-02.htmlFigures released this week on economic activity continue to show strength in Chile (industrial output and employment), as well as Peru and Brazil where credit is growing fast. This strength is also reflected in increased imports in Argentina and Brazil. In addition, the governments of Peru and Venezuela have given new signs of fiscal easing by proposing major rises in publicsector wages (for the Armed Forces in Peru and general in Venezuela). For its part, the Central Bank of Colombia has onceMon, 02 May 2011 09:10:34 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-05-02.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-04-18.htmlThe results of the first round of presidential elections in Peru have affected local financial markets, particularly the stock market. We expect the volatility to continue until the end of May. Economic activity and inflationary expectations in the region are giving off mixed signals. Credit and retail and car sales in Colombia are up, while industrial output in Mexico and retail sales in Brazil have fallen. In the case of Brazil, this is in fact the first clear indicator of an adjustment inMon, 18 Apr 2011 06:55:36 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-04-18.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-04-04.htmlData on economic activity for the start of the year in Chile and Mexico continue to show a strong economy. Credit growth gathered pace in February in Brazil and Peru at around 20% year-on-year. In addition, governments cut expenses, as is the case of Brazil, or increase revenues, as in Mexico. With the aim of containing pressure, particularly on the currency, the Central Bank in Brazil has once more taken exchange-rate measures. While the risks related to geopolitical conflicts and Japan areMon, 04 Apr 2011 06:41:52 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-04-04.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-03-21.htmlEconomic activity figures for the start of the year keep showing the continued economic strength the region. Economic indicators for Brazil and Peru registered fast growth in January, while the industrial sector also expanded in Colombia and Mexico. In the light of these figures and to keep inflation expectations under control, the central banks of Chile and Colombia increased their interest rates (50 and 25 bps respectively). Appetite for safe-haven assets, trading links with Japan andMon, 21 Mar 2011 06:16:58 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-03-21.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-03-14.htmlAlthough February inflation did not increase, domestic demand continues strong, as can be seen in the figures for economic activity in Chile, Colombia and Peru. This suggests that inflationary risks remain in the region. Expectations will continue to be biased upwards as a result of the upturn in some commodity prices and the current geopolitical uncertainty. Given this situation, the central banks continue to take measures. In Peru, the Central Bank once more raised its benchmark rate toMon, 14 Mar 2011 07:07:53 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-03-14.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-03-07.htmlModeration? Brazil and Peru reported strong growth at the close of 2010, with GDP up by 7.5% and 8.8% respectively. The latest sector data on activity show signs of moderation in Chile and Brazil, although not in Argentina. Meanwhile, February inflation data for Brazil and Peru show upward pressure. In both countries the central banks are continuing to withdraw their monetary stimulus. In Brazil the benchmark rate has risen by 50 basis points, while in Peru the reserve requirements wereMon, 07 Mar 2011 09:15:17 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-03-07.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-02-07.htmlMixed closed in the manufacturing sector: Argentina and Chile expand, while Brazil resent the end of the fiscal plan, and in Mexico the decrease in Manufacturing Confidence could indicate a slowdown in production. The dynamic economy and the effect of foreign prices are causing inflationary pressures in the region; the monetary policy remains expansive, but the stimuli continue to be withdrawn gradually. This way, the appreciation of local currencies is again under pressure. In line with theMon, 07 Feb 2011 06:59:08 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-02-07.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-01-31.htmlThe data published this week show an upturn in monthly activity at the end of 2010 in Argentina, Chile and Mexico. We can also see signs of strength in domestic demand in credit growth data in Brazil and Peru, the fall in unemployment in Chile and Venezuela and the rate of growth of imports in Argentina, Brazil and Columbia. All of them point towards faster growth than predicted at the start of 2011, which could have an impact on higher inflation expectations. The region's currencies recordedMon, 31 Jan 2011 06:32:11 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-01-31.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-01-17.htmlData on economic activity in November continue to show signs of growth. It can be seen in the industrial output of Mexico, the Indicator of Economic Activity in Brazil and the trade balance of Peru. Expectations of economic growth in Peru were up in December. Meanwhile, Colombia revised upwards the increase in the minimum wage in response to the December inflationary surprise. Finally, the Central Bank of Chile decided to maintain its reference rate at 3.25%, despite the upward surprises inMon, 17 Jan 2011 06:42:29 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-01-17.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-01-10.htmlInflation was higher than expected in Colombia and Venezuela due to supply shocks, as well as in Chile and Mexico. Economic activity continues strong in the region, boosted by buoyant domestic demand, with growth in Chile and expansion of credit in Colombia of 17.2% y/y. There was a surprising improvement in Brazil’s trade balance in December. Meanwhile, both Argentina and Chile have ended the year with bigger fiscal surpluses than expected. Venezuela unified its dual exchange rate system,Mon, 10 Jan 2011 07:43:12 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2011-01-10.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-12-20.htmlEconomic figures released this week in Argentina, Brazil, Mexico and Peru were below expectations, though it is too early to talk about a slowdown. Imports continued to grow at very high rates in November in Chile, Colombia and Peru, where the trade balances remained in surplus thanks to high commodity prices. Meanwhile, the Central Bank of Chile raised its policy rate in line with expectations by 25 bps to 3.25%. Improved expectations of the U.S. cycle are being passed on to emergingMon, 20 Dec 2010 08:11:13 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-12-20.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-12-13.htmlEconomic activity remains strong in the region, boosted by buoyant domestic demand, with growth in Chile and a quarterly 0.5% expansion in the Brazilian GDP (6.8% y/y). Exports continue to grow as a result of high commodity prices, thus increasing inflationary pressure in Brazil, Colombia, Chile and Mexico. Employment grew in Peru and Mexico in line with growth, but remained weak in Venezuela. Meanwhile, although prices have risen, they are still being held in check. Central banks in BrazilMon, 13 Dec 2010 08:05:19 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-12-13.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-09-07.htmlWhile Peru maintains a high growth rate (above expectations), in Brazil the data for 2Q10 shows that the economy continues growing at a high pace, though lower than 1Q10. The Central Bank of Brazil kept its policy rate at 10.75%. There was a setback to confidence among manufacturers in Mexico as a result of worse news about the US, while consumer confidence remained stable. In Peru, consumers’ confidence dropped to neutral levels due to concerns about inflation. In Argentina and Mexico, taxTue, 07 Sep 2010 08:20:56 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-09-07.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-08-31.htmlThe strength of raw material exports keeps the trade balances of Argentina, Brazil and Chile in the black. However, Brazil’s current account is deteriorating rapidly, and Mexico’s is still negative. Bank lending in Brazil slowed in June, in line with other economic activity indicators. Public spending keeps growing fast in Argentina and Peru, but is still being financed by increasing revenues. Employment figures also improved in Argentina, where the unemployment rate fell to 7.9%; however,Tue, 31 Aug 2010 13:08:46 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-08-31.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-08-17.htmlLatAm: acceleration under control The data released this week shows divergent movements between countries. On the one hand, Peru and Colombia continued to show signs of growth with positive expectations and confidence, while growth in Brazil stabilized despite the support provided by domestic demand and in Mexico industrial output showed signs of stagnation. Central banks continued to control appreciation pressures and overheating: in Chile the CB once again raised its policy rate by 50 bps toTue, 17 Aug 2010 12:12:03 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-08-17.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-08-10.htmlLatAm: Inflation below expectations Inflation data took center stage this week. It was low in Peru and in line with expectations. Although high in Chile, it was still below expectations, as it was in Brazil, Colombia and Venezuela. In Brazil and Colombia the trend was also down. The indicators of economic activity have maintained their trend of pervious weeks: very strong in nearly all the region, but with clear indicators of a slowdown in Brazil and Mexico. The decision by the Central Bank ofTue, 10 Aug 2010 12:38:57 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-08-10.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-07-27.htmlLatAm: sustained growth in activity Economic activity continues to grow, with a surprise from the EMAE (Monthly Estimator of Economic Activity) in Argentina, good data on construction and durable goods in Colombia and Peru, and an increase in credit in Peru and Venezuela. Internal demand is growing in Mexico, although it is still quite slow. In Brazil the Central Bank raised its reference rate but only by 50 basis points instead of the 75 bps expected a few weeks ago, while Argentina and PeruTue, 27 Jul 2010 11:18:55 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-07-27.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-07-20.htmlLatAm: a faster recovery The recovery is gaining speed as the news arriving from the region continues to remain positive. Very significant are the raised debt rating for Argentina by Fitch, the take-up of Colombian bonds and good economic indicators in Colombia, Mexico and Peru. There are some signs of a slowdown in Brazil after high growth in the first quarter of this year. The official interest rate was increased in Chile, but continue to be very expansionary. The equity markets are going upTue, 20 Jul 2010 04:48:31 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-07-20.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-07-19.htmlLatAm: a faster recovery The recovery is gaining speed as the news arriving from the region continues to remain positive. Very significant are the raised debt rating for Argentina by Fitch, the take-up of Colombian bonds and good economic indicators in Colombia, Mexico and Peru. There are some signs of a slowdown in Brazil after high growth in the first quarter of this year. The official interest rate was increased in Chile, but continue to be very expansionary. The equity markets are going upMon, 19 Jul 2010 17:22:25 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-07-19.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-07-05.htmlLatAm: Positive activity indicators offset the impact on markets of an adverse global environment Activity indicators in Argentina, Chile and Mexico surprise positively. Total credit growth in Colombia kept growing in May (4% y/y), boosted by the mortgage portfolio (20.6% y/y). In Peru, public expenditure grew above expectations in May, although it slowed versus the previous month, despite the Government’s announcement regarding moderation of public expenditure. Differing Latam exchange rateMon, 05 Jul 2010 08:02:31 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-07-05.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-06-14.htmlInflation is still not taking off, but central banks are starting to restrict liquidity In a week when almost all countries in the region reported their inflation rates, it becameclear that it still rather subdued, at least in countries with inflation targets. In fact, Colombiaand Mexico reported inflation figures below expectations. However, the central banks ofBrazil and Peru raised interest rates to dampen a potentially-dangerous pace of domesticdemand growth. Chile’sactivity figures alsoMon, 14 Jun 2010 21:58:15 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-06-14.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-05-18.htmlWeekly Highlights (10th– 14th May 2010) The Central Bank of Chile left interest rates unchanged, but signalized that the monetary tightening should soon start. Regarding activity data, confidence indicators moved upwards in Chile and in Colombia while in México industrial production data showed a widespread improvement within economic sectors. In Brazil, retail sales surprised to the upside and reinforced the view that the growth in the first quarter of the year could be significantly higherTue, 18 May 2010 10:56:40 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-05-18.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-05-11.v02.htmlWeekly Highlights (3rd May – 7th May 2010) The Central Bank of Peru surprised the markets by raising its policy rate by 25bps to 1.50% in a “preventive move”. Prices remain under control in Chile and Mexico. The turbulences in international markets had a clear and strong impact in the region. Argentina formalized a plan to the exchange of defaulted debt and, therefore, to normalize its relations with financial markets. 1. Argentina The offer to exchange defaulted debt was formalized on May 5.Tue, 11 May 2010 14:29:08 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-05-11.v02.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-05-03.htmlWeekly Highlights (26th April – 30th April 2010) Latin American currencies displayed signs of strength this week despite an increase in both global risk aversion and regional spreads. In Mexico the economic activity surprised to the upside while in Chile the retail sector expanded, providing support to a positive performance of the GDP in spite of a sharp decline in the industrial activity (as a consequence of the earthquake). Positive news regarding the resolution of Argentinean holdouts andMon, 03 May 2010 21:03:58 GMThttp://www.fxstreet.com/fundamental/analysis-reports/e.economicos@bbva.bancomer.com (BBVA Bancomer)http://www.fxstreet.com/fundamental/analysis-reports/weekly-observatory-latin-america/2010-05-03.html