Latin American currencies react positively over Biden’s withdrawal from the campaign – London Business News | Londonlovesbusiness.com

Latin American currencies began the week with relatively positive performance against the dollar, following a notable depreciation last week.

LATAM FX continues to seek direction amidst political risks in the United States. Over the weekend, President Biden announced the end of his re-election campaign and his support for Vice President Kamala Harris, which has been received with optimism.

Despite this, the possibility of a Donald Trump victory maintains a degree of uncertainty that could affect South American currencies.

The Colombian peso rebounded at the start of the session against the U.S. dollar. However, the decline in oil prices and fiscal imbalances could weigh on the currency. Investors will be attentive to this month’s business confidence data and next month’s inflation figures for clues on the currency’s future direction.

The Mexican peso is also trying to recover from last week’s drop, reacting positively to better-than-expected economic activity data from May. Inflation figures to be released on Wednesday could impact the currency and fuel greater volatility.

In the LATAM FX sphere, the Chilean peso is the most lagging currency, affected by pressure on copper prices amidst uncertainty and the lack of significant developments following the conclusion of the Chinese Communist Party’s plenum.