LATAM: Brazil Takes Custody Of Argentine Embassy In Venezuela Amid Tensions
Repost: Typo corrected. Argentinian President Javier Milei has confirmed that, at his invitation, Brazil has taken custody of the Argentine Embassy in the Venezuelan capital, Caracas. The highly-unusual move follows Venezuelan President Nicolas Maduro's demand that the diplomatic staff of Argentina (as well as those of Chile, Peru, Uruguay, Costa Rica, Panama, and the Dominican Republic) leave the country by 2 August. Milei has called Maduro a 'dictator', and been one of the loudest voices in the region calling the election result from 28 July fraudulent.
- A standoff had presented itself at the Argentinian embassy in recent days as allies of opposition figurehead Maria Corina Machado were on site having first sought political asylum in March.
- The transfer of custody should avoid the situation of the embassy losing its diplomatic status as foreign soil under the Vienna Convention on Diplomatic Relations and the Vienna Convention on Consular Relations.
- If Argentina abandoned the embassy without a transfer of custody it could have seen Venezuelan authorities able to enter the grounds.
- The outbreak of apparent friendliness between Argentina and Brazil comes in spite of the ice-cold relations between Milei and his Brazilian counterpart, Luiz Inacio Lula da Silva. The leaders have yet to meet in person, and less than a month ago Lula criticised Milei for missing a Mercosur trade summit.
- Milei: "I have no doubt that we will soon reopen our Embassy in a free and democratic Venezuela. The ties of friendship that unite Argentina with Brazil are very strong and historic."
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FED: Powell's Initial Comments Lean Slightly Dovish
Powell says that the last inflation reading (ie May), and the one before it (ie April) "to a lesser extent", do suggest that "we are getting back on a disinflationary path"...we want to be more confident that inflation is headed sustainably to 2% before loosening policy. "What we would like to see is more data like we've been seeing recently".
- On a 12-month basis, 2.6% PCE in May represents "really significant progress" on inflation. But "we have the ability to take our time and get it right".
- Asked about a cut in September, Powell laughs, saying he's not going to give any specific dates, reminding that there are risks of going too soon or too late.
SOY TECHS: (X4) Bear Cycle Remains In Play
- RES 4: $1230.50 - High May 7 and key resistance
- RES 3: $1201.50 - High May 31
- RES 2: $1159.38 - 50-day EMA
- RES 1: $1135.63 - 20-day EMA
- PRICE: $1119.25 @ 13:44 BST Jul 2
- SUP 1: $1082.06 - 0.764 proj of Nov 21 ‘23 - Feb 26 - Jun 7 swing
- SUP 2: $1036.25 - 1.00 proj of Nov 21 ‘23 - Feb 26 - Jun 7 swing
- SUP 3: $1000.00 - Psychological round number
- SUP 4: $990.44 - 1.236 proj of Nov 21 ‘23 - Feb 26 - Jun 7 swing
Soybean futures remain soft and the move lower last week reinforces a bearish theme. The recent break of support at $1146.75, the Apr 19 low, and a key support at $1122.75, the Feb 26 low, also strengthens a bearish theme. Furthermore, moving average studies have crossed and are in a bear-mode set-up, highlighting a downtrend. Sights are on $1082.06. Initial firm resistance is at $1159.38, the 50-day EMA.
MNI: FED'S POWELL-DATA SHOWS SIGNS DISINFLATION IS RESUMING
- MNI: FED'S POWELL-DATA SHOWS SIGNS DISINFLATION IS RESUMING
