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Ukraine Headlines Spark Weakness In Equities, LatAm FX Resilient

LATAM
  • Latest Ukraine headlines putting a renewed bid in the US dollar and USDRUB making a brief new marginal intra-day high above 77.37.
    • BREAKING: @CNN reports the President of Ukraine Volodymyr Zelensky said Ukraine "has been informed" that Wednesday, February 16 "will be the day of the attack" - although yet to be confirmed who made the remarks.
  • LATAM FX largely unphased by the latest bout of equities weakness with MXN and BRL continuing to trade in the green.
  • The more shaky risk backdrop has hurt CLP, COP and PEN earlier on Monday amid lower copper prices and political noise in Peru.
  • Tomorrow’s Colombia GDP data headlines the docket before Argentina CPI.
  • Additionally, markets will tentatively be expecting the release of both Peru Economic Activity and the Lima unemployment rate.
  • There will be no further major Latin American data releases for the rest of the week, leaving geopolitical risks the key driving force behind local asset prices.
  • Below gives key levels of LatAm markets in current trade:
    • USDMXN down 0.41% at 20.4546
    • USDBRL down 0.51% at 5.2222
    • USDCLP up 0.62% at 813.63
    • USDCOP up 0.37% at 3944.5
    • USDPEN up 0.56% at 3.7965
    • Bbg Dollar Index up 0.15% at 1179.98
    • S&P E-Mini Future down 35.75 points (-0.81%) at 4375.5
    • WTI Crude Oil (front-month) up $1.73 (1.86%) at $94.79
    • Copper Futures down 1.95 (-0.43%) at 448.65

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