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MXN, BRL & CLP Feeling The Pinch As Equities Decline

LATAM FX
  • Most major equity indices extending session lows in recent trade which sees the USD index trade back into positive territory on Wednesday. While intra-day JPY volatility continues to be the focus across G10 FX, the weaker sentiment is more notably weighing on the likes of MXN, BRL and CLP, all posting close to 1% losses as of writing.
  • Today’s low in USDCLP closely matched with 807.85, the Jun 3 low with the first resistance point not seen until 845.07, the 20-day EMA.
  • Both USDMXN and USDBRL are also posting interesting turnarounds, failing just ahead of noted supports for the pairs at 18.5237 (2020 low) and 5.0108 (Aug 29/30 low and a key support) respectively.
  • The Colombian peso and Peruvian Sol are bucking the trend with the former trading resiliently amid the still positive performance for crude futures and the absence of further political deterioration in Peru stabilising PEN for now.
  • On Thursday, we have Brazil unemployment, plus Colombia & Argentina trade balances before Mexico retail sales data headlines Friday’s docket.

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