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Snapshot: Latest Bout Of Risk-Off Weighs On MXN, BRL

LATAM
  • Latest bout of risk-off in equity/bond markets slowly filtering through to haven FX and in turn, weighing on LATAM FX.
  • Fairly benign price action so far in currency markets but the Bloomberg dollar index did briefly move back into positive territory for Thursday.
  • USDMXN unable to make inroads below 20.25 and now seen 0.3% higher on the day.
  • Additionally, USDBRL has made a strong 1% move higher, after failing just before noted support at 5.1163, the Aug 31, 2021 low.
  • Below gives key levels of LatAm markets in current trade:
    • USDMXN up 0.3% at 20.3372
    • USDBRL up 1% at 5.1799
    • USDCLP up 0.14% at 800.65
    • USDCOP up 0.14% at 3969.23
    • USDPEN down 0.12% at 3.7434
    • Bbg Dollar Index up 0.03% at 1173.77
    • JPMorgan EM Ccy Index down 0.22% at 53.654
    • S&P E-Mini Future down 45 points (-1.01%) at 4425.5
    • WTI Crude Oil (front-month) down $1.37 (-1.46%) at $92.29
    • Gold is up $23.52 (1.26%) at $1893.30
    • US 10-Yr yield is down 7 bps at 1.965%

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