Free Trial

POST US CPI REACT: Dollar Indices Breaking Support

LATAM

The break of 92.00 in the DXY has prompted some renewed selling after the post CPI spike higher in the US Dollar. LatAm FX is benefitting and should the Bloomberg Dollar Index break the most recent lows of 1140.35, this may provide additional tailwinds. Both USDMXN and USDCLP are approaching recent lows at 20.0650 and 705 respectively. The Brazilian Real may struggle to follow suit as the DI curve bear steepens with local assets remaining fragile to domestic uncertainties.


  • Bloomberg Dollar Index down 0.15% at 1140.61
  • USDMXN down 0.32% at 20.0807
  • USDBRL down 0.38% at 5.7137
  • USDCLP down 0.34% at 709.48
  • Brazil DI Swaps:
    • 2-yr +5 bps at 6.615%
    • 5-yr +8 bps at 8.69%
    • 10-yr +9 bps at 9.49%

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.