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Regional Currencies Under Pressure Amid Firmer Greenback Post US Retail Sales

LATAM FX
  • MNI: US JAN RETAIL SALES +3.0%; EX-MOTOR VEH +2.3%
  • US DEC RETAIL SALES REVISED -1.1%; EX-MV -0.9%
  • US JAN RET SALES EX GAS & MTR VEH & PARTS DEALERS +2.6% V DEC -0.4%
  • Regional currencies are feeling the pinch of the ongoing USD strength on Wednesday, all falling around 1% with pressure extending following the firmer US data.
  • USDMXN extends the bounce from 18.50 and price has just breached the high of the week above 18.7290. More notable resistance at 19.0517, the 50-day exponential moving average.
  • Despite finance minister Haddad easing concerns over the inflation targets overnight, USDBRL is also higher and focuses on last Friday’s high at 5.3073, before 5.3518, a Fibonacci retracement.
  • Peru economic activity and unemployment data up next.
  • Colombia GDP data the most notable release on Wednesday.

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