Forex - Brazil Flows: BRL Down 0.35% to 3.726. China's Data Is a Negative

 11:25 (GMT) 14 Jan

  [Forex Flows]

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Brazil Flows: BRL Down 0.35% to 3.726. China's Data Is a Negative (0101-HDSH-C01)

BRL is starting the day on the back foot, losing 0.35% to 3.726, reflecting risk off behavior in the emerging market, after China's trade data disappointed, bringing back concerns about global economic slowdown. Domestically, mood remains positive regarding the future of reforms, although final details are yet to be released, and there is no clear indication of congress support. Di curve is widening slightly on BRL losses with Jan 20 and Jan 21 both widening 1bp to 6.64% and 7.45% respectively.

There is no domestic data today, and survey expectations brought no significant changes to market outlook. In the US, There is no data release scheduled.

Market optimism has increased with signs that the new government may act quicker than expected with respect to reforms. With global backdrop remaining supportive. Currency will establish in the 3.70-75 range.

Forex - Argentina Flows: ARS Stays Below Target Band Even After USD20m BCRA Intervention [UP AT]

 16:27 (GMT) 10 Jan

 [Forex Flows]

As ARS breached the lower bound of the no intervention zone, which has been set at 37.35, the Central Bank has reportedly bought USD 20m at an average price of 37.305. The currency, however, is still below the target band at 37.276. The Bank will liklely have to continue buying USD to take the currency back to the target band. This operation would increase the money base, in turn reducing the appreciating pressures in the ARS.

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