Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
Reporting on key macro data at the time of release.
Real-time insight on key fixed income and fx markets.
- Emerging MarketsEmerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
- Political RiskPolitical Risk
Intelligence on key political and geopolitical events around the world.
- About Us
As we approached month end, equities came under pressure and the DXY has turned from its worst levels. With the commodity complex also lower (BCOM -0.42%), USDMXN and USDBRL have been unwinding some of their recent losses.
- USDMXN has just matched last weeks best levels at 20.1830 (+ 0.7%). 20.25 is short term resistance with more notable horizontal level at 20.43.
- Comments from Heath and the recent downtick in inflation will not have helped MXN bulls, with 20.00 appearing a stumbling block for the MXN rally.
- USDBRL had a very volatile opening few hours as markets digested the BCB announcement on Friday that it would offer up to 16,000 FX swap contracts in a rollover auction on Monday, an increase that was seen by traders as a move to support the real, which may come under pressure toward the end of the year as banks reduce hedge positions.
- In similar fashion to USDMXN, amid the broad risk off move, USDBRL unwound early losses and is now up just shy of 1% on the day, over 2% off its worst levels.
- Our Technical Analyst notes the following levels of importance on the topside:
- - RES 1: 5.4338 20-day EMA
- - RES 2: 5.5257 High Nov 13 and bull trigger