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Summary - MXN Outperforms, Chile Lockdowns

LATAM

MEXICO - The Peso trades well in current climate and USDMXN finds itself back below 20.00 after a 1% sell off from yesterdays highs. Gains in the pair are still considered to be corrective and the downtrend still in place. As mentioned previously BRLMXN selling may be contributing.

  • Mexico Oct. Gross Fixed Investment -14.7% vs. expected -13.7%.

CHILE - Chile announced fresh restrictions which estimates 20% of population to now be fully locked down in an attempt to combat second virus wave. CLP remained on the backfoot yesterday having firmly bounced back above 700 and having defined a key support at 693.00.

  • According to a press release, the Central bank announced it would not issue new bonds in 2021: the debt maturities of 2021 for CLP518bn (USD718mn) will be absorbed via sale of commercial paper (PDBCs).
  • Separately, Chile closes registration for candidates to the constitutional assembly ahead of April's election.

ARGENTINA - Governor Schiaretti announced on Twitter that Argentina's Cordoba Province renegotiated its foreign debt with bondholders without defaulting.

  • Province has delayed maturities and lowered interest rate to 6.08% average from 7.23%.

PERU - Peruvian central bank President Julio Velarde speaks at a virtual conference for business executives Tuesday, alongside Finance Minister Mendoza.

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