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Castillo's Lead Tightens Sharply

PERU
  • PEN shooting higher at the open, with USD/PEN reversing much of the week's losses as markets watch the latest Presidential election opinion polling.
  • Today's Datum/Gestion poll puts Castillo at 42.6% vs. Fujimori's 41.7% - a considerable tightening after last week's polling put Castillo with a 5.4 ppt lead.
  • The shifting in polling follows the death of 16 villagers in rural Peru that Fujimori's campaign has looked to link to Castillo's party affiliations with the Shining Path and other armed groups.
  • USD/PEN needs to fall below the 3.7678 level to close the week's gap higher, with volatility likely to remain elevated headed into the June 6th second round.

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