Forex - Latam Summary & Highlights August 15.


 20:59 (GMT) 15 Aug

  [Forex Highlights]

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Latam Summary & Highlights August 15. (0101-NKNV-C01)

BRAZIL: BRL rallied 1.6% to close at 3.9898, reflecting both improved global backdrop and initial response to the BCB resuming FX intervention in the spot market, along with FX swaps. Di curve did not fall as much as expected and Jan 20 Di dropped 1bp to 5.47% while Jan 25 Di was down 2bp to 6.93%. 5y CDS was 1bp up to 141. IBovespa lost 1.3% to 98,984. August IGP-10 was below forecast at -0.47%.

MEXICO: MXN followed the emerging market trend and gained 0.3%. Gains were limited by Banxico rate cut. Spread between 10y Mbono and 10y UST corrected down by 10bp to 556. 1y IRS was 18bp down to 7.60%. 5y CDS was down 3bp to 121. Mexbolsa lost 0.2% to 38,572 Banxico surprised part of the market with a hawkish cut.

ARGENTINA: ARS recovered some ground gaining 4.93% to 57.25, with the BCRA changing a regulation that will effectively force some banks to sell USD and with some moderate comments by the leading presidential candidate Alberto Fernandez. The monetary policy rate rose 3bp to 74.96%. Bonar 24 increased 24.28% to 52.9. Merval gained 4.22% to 31,182. July inflation came at 2.2% m/m, 54.4% y/y, slightly below consensus. Core prices came at 2.1% m/m, 55.1% y/y.

CHILE: With limited trading as the local market was closed for holiday, CLP closed the day 0.09% stronger to 710.70 on lower UST yields. 1y IRS was stable at 1.86%. 5y CDS dropped 2bp to 39. IPSA was closed for holiday.

COLOMBIA: COP lost 0.4% in the day to close at 3,471.7, reflecting weaker oil prices. 1y IRS increased 2bp to 4.14%. 5y CDS was unchanged at 101. IGBC recovered 0.4% to 12,391. Q2 GDP was above expectations at 1.4%q/q, 3.0%y/y. June economic activity however was below forecast at 2.7%y/y.

PERU: PEN gained 0.2% to close at 3.3924, helped by gains in the global market. 1y NDF was 3bp down to 3.01%. 5y CDS was 2bp down to 54. June Proxy GDP was stronger than expected at 2.6%y/y and July unemployment rate was below expectations at 6.0%.


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