Forex - Latam Summary & Highlights February 12.

 21:28 (GMT) 12 Feb

  [Forex Highlights]

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Latam Summary & Highlights February 12. (0101-HYRB-C01)

BRAZIL: BRL closed the day much stronger, gaining 1.2% to close at 3.7122, with support from the reading of Copom minutes, which confirmed no Selic change in 2019 and with supportive global backdoor. Reports that the final government proposal of the pension reform will not raise the retirement age to 65 years as initialled expected did not impact FX as the market was already closed. BCB placed US$517mn in FX swaps to continue the rollover of US$9.81bn in FX swaps maturing on March 1. Di curve did follow BRL lead and global risk drop. Jan 20 was down 2bp to 6.49% while Jan 21 was down 8bp to 8.78%. 5y CDS was down 4bp to 170. Ibovespa rallied 1.7% to close at 95,999. COPOM minutes confirmed the view that rates will not increase this year.

MEXICO: MXN got some support from the positive turn in the global backdrop and gained 0.24% to close the day at 19.258. Spread between 10y Mbono and 10y UST was down 4bp to 574. 1y IRS was down by 1bp to 8.49%. 5y CDS tightened 2bp to 139. Mexbolsa did not follow the global equity rally and lost 0.4% to close at 43,127 ANTAD same store nominal sales rose 2.5%y/y, a disappointing number. Formal Job Creation was estimated at +94.6K.

ARGENTINA: ARS underperformed peers losing 0.07% to 37.976 reacting to another USD 75 million FX intervention by the BCRA. The monetary policy rate dropped 80bp to 44.356%. Bonar 24 increased 0.57% to 100.0. 5y CDS was 16bp down to 625. Merval gained 1.79% to 37, 687.

CHILE: CLP gained 0.37% to 660.60 amid positive EM sentiment with DXY correcting most of yesterday's rally. 1y IRS was 2bp down to 3.14%. 5y CDS was 1bp down to 48. IPSA gained 0.18% 5,384. In the BCCH survey of expectations, economists lowered their policy rate forecast to 3.25% from 3.50% amid lower inflation and GDP expectations, at 2.7% and 3.5%, respectively. Economists now see the policy rate at 3.75% in 24m, from 4% previously.

COLOMBIA: COP followed the regional rally and recovered 0.4% to close at 3,127.64, with support from oil prices and global backdrop. 1y IRS was 1bp down to 4.41%, 5y CDS was 3bp down to 121. IGBC recovered 0.6% to close at 11,953.

PERU: PEN was marginally down by 0.07% to close at 3.3305, with negative trend in copper prices, countering the positive influence of global backdrop. 1y NDF implied rate was up 5bp to 4.11%. 5y CDS was down 1bp to 75. December trade balance was reported at US$1015mn.

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