23 May 2014
Latin America EM Express: Mexican Q1 GDP grows less than expected
FXStreet (Łódź) - A slew of Mexican data was released on Thursday and on Friday. GDP data for the first quarter of the year disappointed. On a quarterly basis it grew by 0.3%, up from +0.1% in Q4, but below forecasts of a pickup to 0.5%. Year-on-year GDP increased 1.8%, following a 0.7% rise, missing expectations of 2% growth.
Mexico's 1st half-month core inflation index came in at 0.06% in May, down from 0.26% in April. 1st half-month inflation accelerated its decline to -0.37% from -0.19%.
More positive was the Mexican Unemployment Rate data came in at 4.84% in April, slightly down from 4.8% in March and against consensus of an increase to 5.1%.
Brazil also published unemployment numbers, which pointed to a decrease to 4.9% from 5%, against expectations of a rise to 5.2%.
Technicals
On Thursday the BRL weakened the most among emerging market currencies on the news that the country's central bank might reduce its program aimed at supporting the real. The currency fell 0.4% to 2.2160 against the greenback. At the moment of writing USD/BRL was up 0.2% at 2.2200.
On Thursday the USD/BRL daily FXStreet Trend Index, as well as the OB/OS Index were neutral. RSI stood at 43 at the last close, and has climbed to 61 so far today. Daily 2-StDev Volatility Bandwidth was expanding at 105 pips, with ATR (14) shrinking at 170 pips. The 1D 200 SMA was at 2.3007, while the 1D 20 EMA was at 2.2227.
On Friday USD/MXN was down 0.05% at 12.8710.
On Thursday the USD/BRL daily FXStreet Trend Index was slightly bearish, while the OB/OS Index was oversold. RSI was at 36 at the last close, and has slid to 27 so far today. Daily 2-StDev Volatility Bandwidth was expanding at 801 pips, with ATR (14) shrinking at 713 pips. The 1D 200 SMA was at 13.1006, while the 1D 20 EMA was at 12.9636.
Mexico's 1st half-month core inflation index came in at 0.06% in May, down from 0.26% in April. 1st half-month inflation accelerated its decline to -0.37% from -0.19%.
More positive was the Mexican Unemployment Rate data came in at 4.84% in April, slightly down from 4.8% in March and against consensus of an increase to 5.1%.
Brazil also published unemployment numbers, which pointed to a decrease to 4.9% from 5%, against expectations of a rise to 5.2%.
Technicals
On Thursday the BRL weakened the most among emerging market currencies on the news that the country's central bank might reduce its program aimed at supporting the real. The currency fell 0.4% to 2.2160 against the greenback. At the moment of writing USD/BRL was up 0.2% at 2.2200.
On Thursday the USD/BRL daily FXStreet Trend Index, as well as the OB/OS Index were neutral. RSI stood at 43 at the last close, and has climbed to 61 so far today. Daily 2-StDev Volatility Bandwidth was expanding at 105 pips, with ATR (14) shrinking at 170 pips. The 1D 200 SMA was at 2.3007, while the 1D 20 EMA was at 2.2227.
On Friday USD/MXN was down 0.05% at 12.8710.
On Thursday the USD/BRL daily FXStreet Trend Index was slightly bearish, while the OB/OS Index was oversold. RSI was at 36 at the last close, and has slid to 27 so far today. Daily 2-StDev Volatility Bandwidth was expanding at 801 pips, with ATR (14) shrinking at 713 pips. The 1D 200 SMA was at 13.1006, while the 1D 20 EMA was at 12.9636.