A.LATINA COINS-Trade tensions and "Trump effect" will guide the markets of the region

By Manuel Farías

SANTIAGO (Reuters) – Latin American currencies will continue to be ruled by the effects of global trade tensions and the trend of the dollar on foreign markets, after comments by President Donald Trump caused a reversal of the US currency. [19659005] * Central bank meetings in Argentina, Colombia and Chile will also be on the radar of operators, although no surprises are expected in decisions.

* On Friday, Trump reiterated his criticism of the Federal Reserve's interest rate policy and the strength of the dollar. The president wrote on Twitter that the Fed's measures to increase the cost of credit deprives the United States of a "great competitive advantage" and that this could affect the US economy.

* Trump himself said in an interview with CNBC that the strength of the dollar is hurting his country and that he is ready to apply tariffs on goods imported from China for a value of 500,000 million of dollars.

* Trump's words raise Latin American currencies on Friday, especially the Brazilian real, as investors have decided to take profits from the recent rise in the dollar. The currencies of the region had been hit in recent weeks by escalating trade tensions between the United States and China.

* The real would also be subject to the local political scene, after the bloc of so-called central parties. It tends to support the presidential candidate, Geraldo Alckmin, considered more inclined to carry out the economic reforms demanded by the markets in Brazil.

* The currency of Latin America's largest economy rose 2% last week, the largest since February of this year.

* Meanwhile, the Mexican peso could be touched by news from the North American Free Trade Agreement (NAFTA) negotiations, resumed this week a period of stagnation.

* The currency would oscillate between 18.90 pesos and 19.20 pesos for one dollar, according to Alejandro Padilla, director of the market strategy of Grupo Financiero Banorte

* The Argentine peso would maintain oscillating values ​​around 27, 75 units for every dollar, depending on the liquidation of exporters and the Treasury's currency supply, in a context of persistent private demand for dollars. existing inflationary pressure, operators said. * They added that external volatility does not escape the attention of investors because of its impact on the Brazilian market, at a time when savers are closely watching the consequences of a possible war global market in emerging markets. Additional report by Noé Torres in Mexico City and Walter Bianchi in Buenos Aires under the direction of Marion Giraldo)