Summary - Bolsonaro Weighs In On Vaccine, LatAm FX Struggles

BRAZIL - The notable change in sentiment is seeing USDBRL opening higher at 5.21 (+2.4%).

On Saturday Bolsonaro, who has refused to take any coronavirus vaccine, said that he did not think the world's rush for a vaccine was justified because the pandemic is in his view coming to an end. The data suggests the opposite, with several countries including Brazil reporting record numbers of daily cases. This rhetoric, combined with the logistical issues in Brazil regarding a vaccine rollout, display the obstacles still present for Brazil in the coming weeks/months, surrounding the virus.

CHILE - USDCLP following suit and opening over 1% higher around 734. A particularly slow grind lower last week has been reversed with 737.39 highs from Wednesday being approached. On Wednesday we will see the latest minutes from the Chile Central Bank, however, given the lack of catalysts in the domestic calendar, CLP will likely be driven by broader global sentiment.

COLOMBIA - On Friday, Colombian Central Bank left the overnight lending rate unchanged at 1.75%.

• Of note was the fact the BanRep Board voted 5-2 to hold interest rate. Echavarria confirmed that two board members voted for a cut, citing the most recent inflation data, that he described as 'surprisingly' low. The minutes of the meeting will be released later today.
• Separately, Echavarria announced: *Colombia CB to return to 8 policy meetings per year.