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Summary: Brazil Mid-Month Inflation Due Tomorrow

LATAM
  • BRL, CLP and PEN all lead the way, rising between 0.7-0.95%. The close proximity to touted support and the extremely strong rally in the Brazilian Real year-to-date places more focus on tomorrows inflation data, especially due to the added uncertainty surrounding the outcome at the next Copom meeting in March
  • JPMorgan note the February inflation preview (IPCA-15) should add visibility on the impact of indexation mechanisms in some large-weight components of the services CPI basket, particularly education fees. So far, JPM expect above consensus inflationary pressures to keep inflation high at least up to April.
  • Brazilian Current Account and Argentina Economic Activity also to be published.
    • USDMXN down 0.01% at 20.3077
    • USDBRL down 0.97% at 5.0568
    • USDCLP down 0.71% at 793.04
    • USDCOP down 0.2% at 3930.57
    • USDPEN down 0.78% at 3.7305
    • Bbg Dollar Index down 0% at 1174.91
    • JPMorgan EM Ccy Index up 0.43% at 53.708
    • BBG Commodity Index up 1.9103 points (1.71%) at 113.5406
    • WTI Crude Oil (front-month) up $1.28 (1.41%) at $92.35
    • Gold is down $5.57 (-0.29%) at $1900.74

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