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Strength in US Treasury Futures saw 10yr yields drop back below 1.15% and prompted fresh US Dollar selling. Additionally, a very strong commodity complex (Bloomberg Commodity Index +1.4%) has boosted the EM FX rebound.


*USDMXN currently trades down 1.35% at 19.80 and will target the most recent support level of 19.60 2021 lows if the recovery in EMFX continues.

*BRL leading the charge with USDBRL currently down 3.40% at 5.3250, retracing a large amount of the move up over previous sessions.

*USDCLP closed up 0.75% at 726.55, however, will be expected to open lower tomorrow catching up with its LatAm peers amid the rebounding Copper prices.


*There are no major Latin American economic data releases scheduled for tomorrow and global factors should be the main driver of price action.

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