Free Trial

Greenback Weakness Bolstering Regional Currencies

LATAM
  • Broad greenback weakness is pervading through global markets with dollar indices extending on the sell-off across early European hours. The Bloomberg DXY is currently pressing to fresh weekly lows, taking note of the lower US yields with some potential profit taking in play ahead of the Fed.
  • The significant boost for some emerging market currencies such as the South African Rand and Polish Zloty keeps LatAm FX on the front foot.
  • In particular, USDMXN has briefly printed below the 17.00 handle, as the pair extends its corrective pullback. The next support to watch is 16.9728 before major support that remains at 16.6262, the Jul 28 low.
  • USDBRL has erased all of yesterday’s uptick and continues to hover just above important pivotal support at the 4.84 mark.
  • Latest headlines include:
    • Uruguay Aug. Unemployment Rate 8.2% (BBG)
    • Biden and Brazil's Lula are meeting in New York to discuss labor and climate issues (BBG)
    • Heat wave at end of Brazil's winter raises concerns for coffee crop (RTRS)
    • Colombia's Ecopetrol, Gran Tierra Energy extend production contract for 20 years (RTRS)

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.