Free Trial

Greenback Weakness Keeps LatAm Currencies On Front Foot

LATAM FX
  • With secondary estimates of US GDP and price index/PCE revised lower from the prelim prints, there has been further strength for treasury futures and associated weakness for the US Dollar. The Bloomberg dollar index has made a more convincing break of yesterday’s lows, and although adjustments for LatAm FX remain moderate, regional currencies are trading on the front foot.
  • USDMXN continues to inch towards last week’s lows around 16.70 with emphasis remaining on the bear trigger at 16.6262, the Jul 28 low. A break would confirm a resumption of the medium-term downtrend.
  • USDCLP also extending opening losses to half a percent amid a small rebound for copper futures which are approaching the most recent highs just below 385. Overall, USDCLP maintains a short-term bullish tone and this week’s recovery reinforces a bullish theme.
  • As mentioned earlier, USDBRL continues to hover just above initial support at 4.8416, the Aug 10 low.

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.