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UPDATE - MXN Underperforms, BRL and CLP Surge

LATAM
  • CHILE - Copper Futures surge through 400 and are now up over 4% on the session, lending further support to the Chilean Peso. USDCLP firmly underneath 711 level and eyes another break below 700, not seen since early January.
  • BRAZIL - The announcement of the Covid Aid support of BRL250 for 4 months has put a bid in the Real. USDBRL now trades over 1% lower at 5.3750 at time of writing. Joint headlines confirming the increase in indebtedness, keeps pressure on rates with the DI swaps curve shifting higher by roughly 5 basis points.
  • MEXICO - MXN continues to show relative underperformance to the region and is testing the highest levels of the session above 20.44 as local developments continue to weigh on the Peso. The divergence is well indicated by BRLMXN currently up 1.65%.

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