Forex - Latam Summary & Highlights January 16

 22:04 (GMT) 16 Jan

  [Forex Highlights]

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Latam Summary & Highlights January 16 (0101-QNNP-C01)

BRAZIL: BRL could not hold to early gains and succumbed to the rise in DXY, ignoring gains in the equity market. Early gains were tied to better than expected economic activity numbers. BRL closed the day 0.2% weaker at 4.19. Di curve widened after the stronger than expected economic activity numbers. Jan 21 was up 5bp to 4.44%, while Jan 25 increased by 10bp to 6.42%. 5y CDS was down by 3bp to 98. IBovespa was stronger by 0.25% to 116,704 getting help from gains in US equity market. November proxy GDP came at +0.18% m/m, +1.10% y/y, on the high end of expectations. The release keeps the positive trend in the economy with the tertiary sector countering the negative impact of the fall in the industry.

MEXICO: We had been seeing a very narrow range in MXN trading this week with no impact from either the US/China trade deal or the approval of the USMCA trade agreement. MXN closed the day marginally up to 18.781. Mixed global backdrop, where both US equities and DXY had modest gains. Spread between 10y Mbono and 10y UST was down by 1bp to 506. 1y IRS was up by 4bp to 6.98%. 5y CDS was up 1bp to 79. Mexbolsa gained 1.9% to close at 45,303 helped by US equity gains. ANTAD same store nominal sales was soft at 3.8%y/y.

ARGENTINA: ARS lost 0.04% to 59.98. The BCRA reportedly offered to sell USD50m at 60.09, limiting the ARS movements. The monetary policy rate closed the day at the 52% floor imposed by the BCRA. Bonar 24 recovered 1.1% to 39.2. 5y CDS dropped 7bp to 3,275. Merval gained 2.71% to 42,362.

CHILE: CLP lost a mild 0.09% to 775.84 following a copper prices decline. 1y IRS was unchanged at 1.70%. 5y CDS increased 1bp to 46. IPSA gained 0.20% to 4,894.

COLOMBIA: COP continued its downward trend, ignoring the rebound in oil prices. COP lost 0.7% to close at 3,322.85, moving above 3,300 for the first time in the year. 1y IRS was unchanged at 4.29%. 5y CDS was unchanged at 72. COLCAP was down 0.2% to 1,645.

PERU: PEN closed the day basically unchanged at 3.3232. Mixed global backdrop did not provide a trend. 1y NDF was up 2bp to 2.85%. 5y CDS was up by 1bp to 44.

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