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BRL Depreciation Continues As Equities Slide, Falls Over 1%

LATAM FX
  • USDBRL has risen over 1% to start the week as the dollar trades on the front foot and equities have been under pressure during US hours.
  • Price action extended through the highs from last week where the BCB intervened via a USD spot auction. Key resistance is fast approaching at 5.7018.
  • Firmer dollar and waning risk sentiment has weighed on the MXN as well, reversing earlier gains.
  • Latest headline: *Mexico could further reduce Pemex DUC tax burden, AMLO says (BBG)
  • Below gives key levels of LatAm markets in current trade:
    • USDMXN up 0.27% at 20.9472
    • USDBRL up 1.018% at 5.6750
    • USDCLP up 0.26% at 844.5
    • USDCOP down 0.47% at 3882.8
    • USDPEN up 0.2% at 4.0675
    • BBG Dollar Index up 0.35% at 1184.55
    • JPMorgan EM Ccy Index down 0.2% at 52.131
    • S&P E-Mini Future down 28 points (-0.6%) at 4675.25
    • US 10-Yr yield is down 4.9 bps at 1.4343%

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