Summary 1/2 - Risk-Off Weighs On LatAm FX

MEXICO - Weak global sentiment led further outflows in MXN yesterday. The risk-off move prompted some levels to the topside to be broken, altering the technical picture for USDMXN. A further squeeze cannot be ruled out. Focus above will be on 20.6641, the Dec 21 high and previous support at 20.85.

• MEXICO'S TRADE SURPLUS AT $6,262.0 MILLION IN DEC. (bbg) - larger surplus than the 4.6B expected

BRAZIL - USDBRL unwound some of Tuesday's losses, aided by the global pessimism in risk. FGV inflation measures this morning slightly higher than expectations and will add to the potential headwinds as we approach the resumption of congress and markets are able to decipher developments on the fiscal trajectory.

For now, USDBRL remains mid-range of some notable levels. On the downside in the form of the 55day MA ~5.30 and topside strong resistance between 5.50-5.53.

• BRAZIL UNEMPLOYMENT RATE +14.1% IN 3 MONTHS THROUGH NOVEMBER (bbg) - In line with estimates.