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Greenback Reversal Stokes Impressive Recovery For LatAm FX

  • The reversal in fortunes for the greenback through the early US session has prompted an impressive recovery for Latin America currencies, all now rising against the dollar on Friday.
  • Notably USDMXN is back below the 18.50 mark and has printed fresh trend lows at 18.45 as of writing. Below here we have, 18.4050 as initial support, however, more significant support is further out at 17.9401, the 2018 lows.
  • Both USDBRL and USDCLP, after rising roughly 1% at the open have significantly reversed, with the latter pressing towards the lows of the week at 785.
  • For USDBRL, the mid-February lows around 5.13 are the nearest support level of which a break may signal the potential to head back towards the 2023 lows of 5.94.
  • Next week Banxico Minutes; Peru GDP; and mid-month inflation reading headline the LatAm docket.

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