Fynsa
The Fed's actions led to a significant sell-off in dollar rates, with the 10-year treasury rate at a high of 4.50%, a level not seen since 2007.
We can expect that, as far as possible, the next cuts in the TPM will remain in the more conservative range of the corridor presented in the last IPoM.
Any of the last 3 months of core inflation in the U.S. has been the softest reading since September 2021.
At the traditional financial conclave, the Fed chairman noted that the move in rates continues with more upside risks than downside risks, and that he was ready to continue raising them if necessary.
It seems fair to ask whether the dollar's uptrend will continue or whether these are levels to exit long positions or perhaps bet on declines.
Despite higher financing costs and higher home prices than two or three years ago, the U.S. residential market will continue to perform well.
The likelihood of a further hike or a further pause at the Fed's next September meeting will depend on data developments.
There are still opportunities, but the focus should remain on the search for investment grade opportunities in the region, to the detriment of high yield.
Nathan Pincheira and Humberto Mora, of Fynsa, provide their outlook for the economy and investments in the first half of 2023 and for the months ahead.
