Forex - Latam Summary & Highlights 15th September


 20:46 (GMT) 15 Sep

  [Forex Highlights]

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Latam Summary & Highlights 15th September (0100-SGLF-C01)

BRAZIL: BRL closed the week weaker by 0.8% to close at 3.1107 as BCB reduced the rollover ratio for FX swaps to 60% and new accusations against Pres. Temer were lodged. Economic activity however came stronger than expected, improving economic outlook. Di curve was mixed on political noise with Jan 18 Di falling 5bp to 7.61% while Jan 21 Di increased by 7bp to 8.98%. 5y CDS was down 2bp to 179. Ibovespa closed 3.7% stronger at 75,756 breaking the 75 K mark in the week for the first time ever.

Latam Summary & Highlights 15th September (0100-SGLF-C02)

MEXICO: MXN gained 0.4% in the week to close at 17.6446, with a more supportive global backdrop and despite gains in DXY. Oil prices was a positive factor. The Mbono/UST 10yr spread was down 9bp to 461, with 1y IRS increasing by 1bp to 7.29%. 5y CDS was down 1bp to 98. Mexbolsa closed 0.3% weaker in the week at 49,945, following global gains.

Latam Summary & Highlights 15th September (0100-SGLF-C03)

ARGENTINA: ARS closed the week stronger by 1.33% to 16.9764 on hawkish BCRA. Bonar 24 was up 0.16% to 118.44 while 5y CDS was down 14bp to 264. Merval corrected down 1.3% to 23,723.

Latam Summary & Highlights 15th September (0100-SGLF-C04)

CHILE: CLP lost 0.8% in the week to close at 625.53 with copper prices correcting previous rally, reducing support for the currency. 5y CDS was down 3bp to 52 while 1y IRS jumped 4bp to 2.43%. IPSA was stronger by 2.2% to 5,202.

COLOMBIA: COP was 0.33% stronger in the week to close at 2,897.36, despite strong rise in oil prices. 1y IRS corrected down by 2bp to 4.82% despite relatively less dovish than expected Banrep guidelines. 5y CDS was down 3bp to 112. IGBC lost 0.4% to close at 11,159. Minutes from the 31 August monetary policy meeting suggested that majority is concerned on the neutral level of rates.

PERU: PEN lost 0.5% to 3.25 on BCRP intervention and political crisis after cabinet was forced to resign by congress vote of no confidence. 1y implied NDF closed at 3.96% down 29bp. 5y CDS was down 31p to end the week at 69. July GDP surprised on the downside, with a larger than expected surge impact of fishing on manufacturing production (-6.28%y/y) and soft retail (1.21%m/m), services (2.99%y/y) and mining (1.8%) performances, countering the steady behaviour in construction (3.8%y/y). Unemployment was lower than expected at 6.7% with a stronger growth in the labour force of 3.4%y/y, while nominal wages resumed a more 'normal' level at 1.7%y/y.


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