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Continued Strong Short-Term Bounce For BRL and CLP

LATAM
  • The Brazilian real and the Chilean peso have both extended their relief rallies and are testing horizontal pivot supports. USDBRL resides right on the May/August 2021 highs that may provide some short-term support. Key trend support to watch, however, has been defined at 5.4342.
  • According to Bloomberg reporting, Citigroup strategists upgraded their recommendation on the Chilean peso to neutral from underweight after candidate Kast gained ground in polls ahead of the presidential election on Nov. 21.
    • USDBRL down 1.03% at 5.4851
  • Brazil DI Swaps:
    • Jan '23 -7 bps at 12.14%
    • Jan '26 -19 bps at 11.87%
    • Jan '31 -18 bps at 11.72%
    • USDCLP down 0.99% at 794.58
  • Chile Camara Swaps:
    • 2-yr -13 bps at 4.95%
    • 5-yr -15 bps at 5.16%
    • 10-yr -14 bps at 5.41

MNI/Bloomberg

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