Subdued Session As Markets Await Fed Chair

Given the moves we have become accustomed to seeing this year, LatAm FX has been fairly uneventful for the majority of today's session with no notable data releases in the region.

• Following the large gap higher in USDCLP to 751, the range remained fairly contained around the 740 handle with the pair holding onto the majority of gains, closing up 2.04%.
• USDMXN remains heavy with demand for the Peso evident on any dip. However, in similar fashion has felt glued to 19.80 all session, roughly unchanged on the day, with some notable size option expiries rolling off earlier with 19.85 strikes.
• USDBRL trades 0.5% lower at 5.30 with a small continuation lower from yesterday, most likely as a result of falling US yields. The relatively constrained 1.5% range today feels like a respite from recent volatility in the currency. Local swap rates, however, continued to reflect a sense of pessimism surrounding the Covid situation and the ensuing headwinds for the fiscal trajectory.
• With a lack of domestic data on the docket tomorrow, markets may be driven by Fed Chair Powell and broader global themes.