Current account figures released this week go a long way to explaining the diverging performance between the Mexican and the Chilean pesos. While we expect both to weaken over the coming months, there is a high risk of sharp currency falls in Chile. Meanwhile, the minutes from Banxico’s policy meeting earlier this month show that the debate on the Board is starting to shift to slowing the pace of tightening. Finally, Argentina's new economy minister Sergio Massa is taking steps towards a more orthodox fiscal policy stance.
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