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Regional Currencies Extend Gains Amid Impressive Bid For EMFX

LATAM FX
  • Impressive bid for regional currencies, all rising well over 1% against the softening greenback amid lower US yields, with the lurch higher for equities exacerbating momentum for the emerging market currency basket.
    • USDMXN now trades back below the pre-Banxico levels and focuses in on 17.2833, the Nov 3 low. A move below here would resume the bear leg and open 16.9988, the Sep 20 low.
    • USDBRL extending its recent bearish theme with sights firmly set on 4.8408 next, the Sep 19 low and the 4.8000 handle.
    • USDCLP reverses the entirety of yesterday’s bounce, printing a fresh weekly low of 906.75. Key short-term support does not come in until 873.00, the Nov 3 low.

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