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Greenback Recovery Weighs On High Yielders

LATAM FX
  • In addition to the sharp move in MXN, the recovery in the greenback in the aftermath of the US data is weighing on Latam FX, most notably the Brazilian real and Colombian peso, which are c.0.6% weaker against the dollar on the day. After trading stronger on the open, CLP has sold off and is now just 0.1% firmer against the dollar.
  • For USDBRL, support at 5.1212, the 20-day EMA, was momentarily pierced, however, the bounce emphasises the bullish theme that remains intact and attention is on 5.3330, 76.4% of the Nov 11 ‘23 - Jul 28 ‘23 bear leg.
  • The USDCLP medium-term trend condition remains bullish. Support to watch is unchanged at 935.63, the Mar 15 low. On the upside, key resistance and the bull trigger remain unchanged at 990.67, the Feb 26 high.

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