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Summary 1/2 - Brexit Weighs On Risk, USD Catches A Bid

LATAM

MEXICO - Brexit uncertainty sours risk sentiment and the USD catches a bid to start the week. USDMXN unwound a lot of last week's losses, rising just over 1% but has held the now resistance area of 19.95/20.00.

  • Wednesday will provide us with CPI readings for November as we approach the final Banxico meeting of the year on the 17th.
  • Today, AMLO expected to announce his nomination for central bank board member to replace Javier Guzman.
  • 1200GMT/0700ET Sep. Gross Fixed Investment Expected -14.6% vs Prior -17.4%

BRAZIL - USDBRL had a quiet session on Friday as it traded in line with MXN, closing towards its worst levels at 5.12. Expected to open higher today in line with risk pessimism. Noted support remains 5.0841.

  • *COPOM the highlight of the week on Wednesday. – Full Preview to follow.
  • Tomorrow we will see IPCA inflation for Nov, expected at 4.19% vs a prior reading of 3.92%.
  • This morning, IGP-DI inflation lost momentum printing 2.64% m/m in Nov (from 3.68% m/m in Oct).

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