Forex - Latam Summary & Highlights 6th December

 22:48 (GMT) 06 Dec

  [Forex Highlights]

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Latam Summary & Highlights 6th December (0100-VQDH-C01)

BRAZIL: BRL closed 0.32% stronger at 3.2324, as the market kept hopes of a pension reform approval after the PMDB announced that it will support the reform. Vote count still suggests the government is still short of the 308 needed. BCB continued the rollover of US$9.45bn in FX swaps maturing on Jan 2nd. Di curve followed positive mood ahead of CoPom with Jan 19 DI unchanged at 7.04% and Jan 21 Di closing down 2bp to 9.16%. 5y CDS increased 1bp to 163. IBovespa gained 1.12% to 73,358. As expected COPOM cut the Selic rate by 50bp to 7.0%. November vehicle production came at 15.2%y/y with sales at 14.6%y/y. Commodity prices, measured in domestic currency, rebounded by 4.55%m/m.

MEXICO: MXN closed the day with another negative performance, losing 0.5% to 18.8655 with DXY gains and new concerns over NAFTA's future. MXN was ad week as 18.922. 10y spread between Mbono and UST curve was up 4bp to 500 while 1y IRS increased 1bp to 7.72%. 5Y CDS was unchanged increased by 4bp to 102. Mexbolsa rallied 0.6% to close at 47,463. Consumer Confidence SA jumped 1.0pp in November to 88.8. November Vehicle Production slowed down to 4.5%y/y. Private consumption surprised us on the upside despite very weak retail sales. The print came at 0.8%m/m, 3.0%y/y.

ARGENTINA: ARS had a positive day, gaining 0.2% to close at 17.2551. Bonar 24 was unchanged at 116.99, while 5y CDS was down 5bp to 228. Merval lost 0.05% to close at 26,470.

CHILE: marginal upward correction in copper prices, helped CLP to withstand negative global backdrop and drop only 0.9% to 654.40. 1y IRS was up 1bp to 2.47% on weaker CLP. IPSA lost 0.75% to close at 4,888. 5y CDS was up 2bp to 58.

COLOMBIA: COP closed weaker by 0.46% at 3,010.23 to reflect weaker oil price and stronger DXY. 1y IRS was up 2bp to 4.22% with stronger than expected inflation data. IGBC was stronger by 0.30% at 10,871. 5y CDS increased by 2bp to 110.

PERU: PEN closed the day marginally weaker at 3.2378, pressured by weaker copper prices and stock exchange sell off following the prison order of major construction firm executives. 1Y NDF implied rate was down 2bp to 4.40%. 5y CDS closed 1bp down to 70.

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