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Summary - Mex Senate Irk Banxico, Brazil Retail Sales

LATAM

MEXICO - Mexico's Senate approved a controversial law on Wednesday that would oblige the central bank to buy up cash that commercial banks cannot return to the financial system, fanning concerns it could end up taking in laundered money from drug cartels.

The Senate also approved AMLO's selection of Galia Borja Gomez to the CB board.

  • USDMXN holds 20.00 almost to the pip and settles back into the range for now, last 19.87.

BRAZIL - In other news, Brazil's Arthur Lira announced he's running for Lower House Speaker. This comes as no surprise as he is allied with Bolsonaro and touted to do so. He also made a comment saying, "Covid Cash handouts needs further discussions". This is definitely contrary to previous comments from the President saying they will and must end in 2020.

  • Oct. Retail Sales m/m comes in at 0.9%
  • Oct. Retail Sales y/y comes in at 8.3%
  • Both roughly one percentage point above estimates, indicating a continuing recovery in economic activity.

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