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Risk-Off Continuation

LATAM FX

A bounce in the DXY and lower equities saw a continuation of yesterday's moves in Latam FX. USDMXN spiked quickly back above 20.00 printing a high of 20.07 and USDBRL has filled most of the gap left from Dec 1st open.


With no clear catalyst, markets are seeing an extension of the risk-off theme from yesterday amid concern governments will have to increase restrictions to curb the virus spreading before vaccines kick in.


*Brazilian Real's 1-month implied volatility rose to near 21%. BRL is down 2.6% in two sessions and is already the world's worst major currency this year.

*200-day MA in USDBRL comes in at 5.3735, with the 100-day MA at 5.4114.

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