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Snapshot: Softer USD, Bounce In EMFX Create Perfect Storm For Real

LATAM

USDBRL the clear standout story today in the region. A more hawkish BCB and a technical rejection prompted a very aggressive reversal in the pair and saw the Real lead the global charge.


Markets remain justifiably concerned about the growing political consensus on the need for further stimulus as a second-wave of Covid-19 inflicts headwinds for politicians. This backdrop is likely to keep intra-day volatility high as we approach the reconvening of Congress in Feb.


USDMXN had a small move in comparison but did stall a strong 3 day rally up to 20.30, consolidating back to around 20.00.

  • Bloomberg Dollar Index 1121.71 (-0.3%)
  • Bloomberg Cmdty Index 80.48 (+0.63%)
  • JPM EM Currency index 57.502 (+0.78%)
  • USDBRL 5.3195 (-3.3%)
  • USDMXN 19.9716 (-0.67)
  • USDCLP 732.44 (-0.02%)

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