Forex - Latam Summary & Highlights May 15.

 20:44 (GMT) 15 May

  [Forex Highlights]

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Latam Summary & Highlights May 15. (0101-LDYF-C01)

BRAZIL: BRL did not follow the regional rebound and lost 0.5% in the day at 3.9955, spooked by the weaker than expected data in economic activity and political noise that suggests the path to approval for the pension reform is problematic. Di curve widened on the same basis as BRL losses. Jan 20 increased by 1bp to 6.41% while Jan 25 was up 5bp to 8.61%. 5y CDS increased by 1bp to 177. Bovespa lost 0.9% to 91,303. March proxy GDP came at -0.28% m/m, -2.52% y/y, below market expectations, which will lead to further cuts in GDP forecasts for Q1 and the year. This is the result of disappointing industrial and services data.

MEXICO: MXN benefited from news that the Trump administration is looking to conclude the auto and steel tariffs tariff agreement with Canada and Mexico. Moreover the delay to applying tariffs to autos produced in Europe and Japan boosted the market. MXN gained 0.5% to 19.06. Spread between 10y Mbono and 10y UST was unchanged at 569. 1y IRS was 2bp down to 8.29%. 5y CDS was down 5bp to 117. Mexbolsa lost 0.3% to 43,301.

ARGENTINA: ARS managed to extend the late stability thanks to a positive regional trend and a bounce of soy prices. The currency closed 0.06% weaker to 44.989. The monetary policy rate was 2bp down to 71.602%. Bonar 24 increased 0.28% to 70.0. 5y CDS was 10bp down to 1,194. Merval recovered 2.16% to 33,212. April headline inflation came well below forecasts at 3.4% m/m, 55.8% y/y. Core inflation came at 3.8% m/m, 58.0% y/y.

CHILE: After a weak opening on disappointing Chinese industrial production and retail sales, CLP recovered by the end of the day and closed 0.03% stronger at 690.85. 1y IRS was 1bp down to 3.04%. 5y CDS increased 1bp to 46. IPSA lost 0.27% to 5,005.

COLOMBIA: COP recovered 0.2% to 3,285.55, with higher oil prices and overall recovery in emerging currencies. 1y IRS was unchanged at 4.37%. 5y CDS dropped 1bp to 108. IGBC lost 0.4% to 12,248. Q1 GDP result was below market expectations at 0.0%q/q, 2.8%y/y. The main surprise came in construction with a -4.0%q/q, -5.6%y/y. March Economic Activity Index was weaker than expected at 2.6%y/y.

PERU: PEN accompanied the rebound in global emerging markets, gaining 0.1% to close at 3.175. 1y NDF was up 9bp to 3.85%. 5y CDS was up 1bp 67. March GDP was on market expectations at 3.2%y/y. February-April Unemployment was below forecasts at 7.3%.

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