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Risk Recovery Prompts MXN Rebound, Continues To Underpin BRL

LATAM
  • Continued uptick in global equity benchmarks and a heavy dollar is underpinning the rally across LatAm currencies on Wednesday, led by a significant rebound in the Mexican Peso.
  • USDBRL is close behind, currently testing the 5.00 mark and in close proximity to the bear trigger at 4.9943.
  • Latest headlines sees Credit Suisse adjust their Brazilian forecasts:
    • Brazil 2022 CPI est. raised to 7% from 6.2%
    • Brazil 2022 Selic rate est. raised to 13.25% vs 12.75%
  • Below gives key levels of LatAm markets in current trade:
    • USDMXN down 1.68% at 21.0526
    • USDBRL down 1.33% at 5.0044
    • USDCLP down 1.08% at 801.7
    • USDCOP down 0.28% at 3760.33
    • USDPEN down 0.72% at 3.7124
    • Bbg Dollar Index down 0.8% at 1196.45
    • JPMorgan EM Ccy Index up 0.93% at 50.491
    • S&P E-Mini Future up 82 points (1.97%) at 4252.5
    • BBG Commodity Index down 3.2413 points (-2.44%) at 129.0219
    • WTI Crude Oil (front-month) down $6.55 (-5.3%) at $117.51
    • Gold is down $61.72 (-3.01%) at $1987.07
    • Copper Futures down 11.6 (-2.47%) at 458.45

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