Zorrox Weekend Update 20.4.25

Volatility, Policy Shifts, and Global Repricing: Your Weekly Financial Recap

Markets kicked off the week riding a wave of macroeconomic signals. In the U.S., a stronger-than-expected jobs report cooled bets on imminent rate cuts by the Federal Reserve. Meanwhile, over in Asia, a rebound in China’s factory activity boosted hopes of regional growth stabilization. Across the Atlantic, the European Central Bank maintained its cautious stance, noting that inflation remains sticky, and the policy path forward will depend heavily on the next round of data.

Markets React: Rangebound, Rotational, and Reactive

Global equities reflected the mixed tone of the week. The S&P 500 experienced midweek losses before recovering into Friday. Gold climbed to a three-month high, and oil surged more than 3% on rising tensions in the Middle East. Bond markets stayed rangebound, with U.S. Treasury yields struggling for clear direction as investors processed central bank guidance and inflation risks.

LATAM Focus: Peso Volatility, Central Banks Hold

In Latin America, the Mexican peso continued its volatile ride as U.S.-China tariff uncertainty returned to headlines. USD/MXN tested resistance levels, while traders watched Washington’s rhetoric closely. The Bovespa in Brazil slid, largely weighed down by weaker commodity demand. Meanwhile, central banks in Colombia and Chile kept rates unchanged, pointing to lingering inflation pressures despite a deceleration in growth.

Commodities & Currency Moves

Currency markets were active throughout the week:

• USD/MXN: Hit fresh highs amid risk-off flows

• USD/CNY: Continued to push higher as sentiment toward China softened

• Gold (XAU/USD): Broke through the $2,350 level on safe-haven demand

• Oil (WTI): Rallied on Middle East supply concerns and tightening inventories

What to Watch Next Week

Looking ahead, several assets and macro drivers are poised to shape the next trading cycle:

• USD/MXN: Tariff headlines and positioning data could drive more volatility

• Gold: Could stay bullish if macro and geopolitical risks remain elevated

• U.S. Treasury yields: Set to respond to this week’s inflation print

• Chinese equities: Next week’s export data could bring renewed momentum

• Crude oil: Any escalation in Middle East tensions could push prices higher

Advice for Traders

As we head into the new week, the theme is clear: data and headlines are in control. For LATAM-focused traders and global investors alike:

• Stay flexible with FX exposure—especially in emerging markets

• Monitor macro events more closely than ever

• Hedge against surprise inflation prints or geopolitical flare-ups Stay sharp. Trade smart. We'll see you next week.