Update, BRL Reverses Gains

Despite both USDBRL and USDCLP opening in negative territory they have reversed and are both now firmly in the green for the day. MXN remains very stable.

USDBRL spiked down 1% on the open to trade 5.2450 but has since reversed and now trades up 0.8% at 5.34. This comes despite falling UST yields and an underperforming US dollar. The rates market has seen some steepening with front end yields 2 basis points lower but 5-7 bps higher further along the curve. The Ibovespa resides down 0.8%, with US equities having sold off from earlier highs.

USDMXN not following suit. 19.60 support has held but no reversal has emerged with the pair flat on the day, despite very weak local equities down 2.00%. USDCLP has also reversed after a very weak open. Good demand sub 730 sees us trade up 0.37% on the day at 736.50.