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Broad Greenback Weakness Supporting LatAm FX

LATAM FX
  • Broad greenback weakness is extending in recent trade and will be worth monitoring as we approach value date month-end. The price action continues to support the likes of the Brazilian real and the Colombian peso, which are outperforming regional peers on Tuesday.
  • Additionally, after briefly printing a marginal new high on the week, USDMXN has had a solid reversal back towards 17.10, with the rally for equities underpinning the EM FX strength. The upside in risk coincides with dovish tones from Fed's Waller - countering the more inline with exp. Comments from Bowman, who favours hiking rates further if inflation progress stalls.
    • USDMXN down 0.2% at 17.1325
    • USDBRL down 0.66% at 4.8666
    • USDCLP down 0.2% at 870.22
    • USDCOP down 0.8% at 3942.8
    • USDPEN up 0.27% at 3.7325

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