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Bearish Cycle Still In Play


Death Cross Adding Pressure


Risk Off Prompts Safe Haven Demand


LATAM FX: With the Bloomberg Dollar Index reaching it's highest level since December 21st, LatAm currencies are under pressure:

  • USDMXN retains bullish undertone approaching best levels of session at 20.5158. A closing of the weekend gap would require a move back to 20.5911.
  • USDBRL has filled the gap from the open and now trades marginally positive on the day at 5.4741. Noted strong resistance above at 5.5262.
  • Hacienda Dollar Auctions being called have been unable to halt the reversal higher in USDCLP, obviously partially offset by the central bank buying their 40mil USDs.
    • Worth noting for those that follow, FyF changed their signal to red on Friday, indicating that a change in recommendation may be imminent. Despite being towards the top end of foreign allocation of 70% in their advice, multiple analysts have not ruled out moving to 80% creating further headwinds for the peso in the short term.
MNI London Bureau | +44 020 3983 7893 |