UPDATE

US Dollar demand has kept LatamFX under pressure, however there are some added intricacies that may be enhancing the sell-offs.

• MEX - USDMXN leading the way up just shy of 1%. Despite confirmation from Sanchez that Mexico will abide by congressional approval on electricity, this is a dent in the President's initiative. Analysts have alos picked up on Heath's other comment on inflation where he 'anticipates inflationary pressures to pick up in April which could constrain the bank.' In line with all of this rhetoric, TIIE swaps curve has shifted higher between 3.5-4.5 basis points.
• BRAZIL - Consistent discussion regarding further cash handouts are highlighting the lingering risks for Brazil. After a fairly benign early trade, USDBRL had a quick one percent rally from 5.36 to 5.4150. Bear steepening in the DI curve sees swap rates 3 basis points higher in the front and as much as 12 basis points towards the long end on contracts expiring in 2031.
• CHILE - Copper futures have come under fresh pressure and reside down 0.45% in line with Bloomberg Commodity Index weakness. Precious metals heavily affecting the slide and will be important to monitor for the Peso, which continues to battle with Hacienda supply of dollars.