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US Data Further Boosts Greenback, Weighs On Local Currencies

LATAM FX
  • The much stronger than expected US ISM services index has provided an additional boost to the USD following the above consensus employment data. With front-end US yields reversing the entirety of the moves seen since Wednesday, the USD continues to trade in a buoyant manner with the DXY extending gains to just shy of 1% on Friday.
  • LatAm FX really feeling the brunt of the sentiment with specific pairs such as USDMXN and USDBRL extending the rejections of key aforementioned technical supports.
  • Colombia CPI is released over the weekend and next week features January inflation data for Chile, Mexico and Brazil. The Banxico rate decision is scheduled for Thursday.
  • Below gives key levels of LatAm markets in current trade:
    • USDMXN up 1.15% at 18.8878
    • USDBRL up 1.49% at 5.1181
    • USDCLP up 1.63% at 792
    • USDCOP up 1.24% at 4677
    • USDPEN up 0.58% at 3.8541
    • Bloomberg Dollar Index up 0.85% at 1229.08
    • USDCNH up 0.6% at 6.7781
    • S&P E-Mini Future down 29.75 points (-0.71%) at 4157.5
    • Gold is down $35.26 (-1.84%) at $1877.59
    • US 10-Yr yield is up 15 bps at 3.54%

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