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Strong US Employment Data Puts Regional FX On Back-Foot

LATAM FX
  • Stronger-than-expected US employment data has put pressure on LatAm FX on Friday, with USDCLP gapping up by more than 1% on the open and USDBRL rising by over 0.7%, taking the pair back above key resistance at 5.2869. Following the large gains earlier this week, USDMXN remains moderately lower on the day.
    • For USDBRL, a clear breach of key resistance at 5.2869, the Apr 16 high, would open 5.3330, 76.4% of the Nov 17 ‘22 - Jul 28 ‘23 bear cycle.
    • A bear trend in USDCLP remains intact and the latest recovery appears to be a correction - for now. The 20-day EMA has been pierced. The next important resistance is seen at 926.79, the 50-day EMA.

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