The measures undertaken by Argentina's government to stem the run on the peso over the past couple of weeks might provide some temporary relief, but with inflation and the fiscal position continuing to head in the wrong direction, the currency is likely to remain under pressure and the risks of a messy devaluation are growing. Elsewhere, Paraguay's presidential election on Sunday could see yet another country in the region shift closer to the China camp. Finally, Brazil's central bank is likely to push back against expectations for imminent interest rate cuts when it meets next week.
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