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LATAM
  • MEXICO - Despite the US Dollar holding on to gains, USDMXN ran out of energy and settled into the middle of the day's 20.2667-20.4886 late session range, down 1.1% on the day.
  • BRAZIL - Similar lacklustre Monday price action in USDBRL as the market awaits the elections of new heads of the Lower House and Senate later today. 5.50/53 continues to cap the topside for now. Expect volatility to pick up throughout the week as congress resumes their agendas this week.
  • CHILE - Weaker Peso saw USDCLP close up 0.58% at 736.75. In the rates space, local swaps were seen 3-5 basis points higher across the curve. A potential reason for this would be in reaction to a beat of expectations for the GDP proxy. The Imacec index, dropped 0.4% from a year earlier, less than the -2.3% median forecast of analysts surveyed by Bloomberg. Economic activity grew 3.5% from November, the central bank reported on Monday.
  • COLOMBIA - Local swap rates also higher, roughly in line with other rates markets in Latin America. Bear flattener in play with 2-year local swap rate ~6 basis point higher and ~1.5 basis points higher in contracts due 2031.

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