Summary (1/2) - Bolsonaro Lacking Support In Second Round Elections

MEXICO - Heath spoke late Friday following his vote to cut rates at last Banxico meeting:

• Mexico should have room ahead to cut rates
• Banxico December rate vote 'very data dependent'
• Mexico CPI should slow 'quite fast' after April, May

USDMXN remains in fairly tight range 19.94-20.18 as we await month end flows and any developments on the US fiscal front.

BRAZIL - Second round of Municipal Elections over the weekend in Brazil.

• Results reinforced first round fears for Bolsonaro, with only five mayoral candidates with his support winning their races and none in the most critical cities.
• USDBRL steady end to the week hovering just above 5.25/30 support. A next move may depend upon any progress seen on the reform front, with the elections now taking a back seat.

On the data front we will see Q3 GDP which should show the economy recovering a large part of the pandemic hit, while October industrial production should suggest a strong start to growth in Q4.