RECAP

The Greenback rally across the week faltered following the generally poorer than expected January US jobs report. Markets looked through a better-than-expected unemployment and underemployment rate, with the headline well below forecast, twinned with a sizeable downward net revision for December on top. The headline change in payrolls came in at 49k vs. Exp. 105k, with particular weakness in private and manufacturing payrolls numbers.

Stocks took payrolls in their stride and provided a solid foundation for EM assets and EMFX.

USDMXN approaches the close as the biggest mover, down 1.4% and resting just above the worst levels of the week at 20.11. USDBRL not far behind, off 0.95% at 5.3817 as of writing. The currencies benefitted from both WTI and Brent crude futures extending recent outperformance and posting a mammoth week.

Tonight, we will see Colombia CPI. Next week highlights from the calendar include inflation data from Mexico, Brazil and Chile as well as rate decisions for Mexico and Peru.