LATAM FX: Andean FX Buoyed By Hope Of Tariff Curbs, CLP Outperforms With Copper
Mar-05 16:51
- Andean FX have traded on the front-foot Wednesday, amid broad dollar weakness as optimism has risen that the US could reach a tariff deal with Mexico and Canada as soon as today. CLP has outperformed, aided by a 5.6% jump in copper prices as Trump threatened to impose a 25% tariff on copper imports in his speech to Congress yesterday.
- USDCLP has fallen by 1.3%, taking losses this week to over 3%. The move brings the pair to the lowest level since October 15, narrowing the gap to 9.2343, the Oct 11 low, and 921.59, the 76.4% retracement of the upleg between Sep 27 ‘24 - Jan 3.
- Despite the further decline in oil prices today, USDCOP has fallen by 0.7%, although the move only unwinds around half of yesterday’s gains. A rebound of oil prices from here amid a more supportive risk backdrop could keep USDCOP towards the lower end of its recent range.
- Meanwhile, USDPEN has declined by a further 0.4% to 3.65, bringing the pair to the lowest since August 2023. BBVA notes that yesterday the BCRP placed PEN 700mn of FX swaps amid PEN 650mn of maturities, for a net issuance of PEN 50mn. They remain short USDPEN from 3.68, targeting 3.55, with a stop of 3.74.
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OPTIONS: Expiries for Feb04 NY cut 1000ET (Source DTCC)
Feb-03 16:40
- EUR/USD: $1.0250(E873mln), $1.0280(E910mln), $1.0300(E1.2bln), $1.0320(E1.0bln), $1.0375(E1.0bln), $1.0395-05(E1.4bln), $1.0425-35(E2.4bln)
- USD/JPY: Y152.00($500mln), Y154.00($663mln)
- AUD/USD: $0.6275(A$1.6bln), $0.6335-50(A$896mln), $0.6420(A$1.1bln), $0.6595-00(A$2.5bln)
STIR: BLOCK: June'25 SOFR Put Fly
Feb-03 16:38
- 5,000 SFRM5 95.56/95.68/95.81 put flys, 4.75 ref 95.89 at 1123:56ET
FED: US TSY 26W BILL AUCTION: HIGH 4.155%(ALLOT 95.65%)
Feb-03 16:32
- US TSY 26W BILL AUCTION: HIGH 4.155%(ALLOT 95.65%)
- US TSY 26W BILL AUCTION: DEALERS TAKE 24.87% OF COMPETITIVES
- US TSY 26W BILL AUCTION: DIRECTS TAKE 7.24% OF COMPETITIVES
- US TSY 26W BILL AUCTION: INDIRECTS TAKE 67.89% OF COMPETITIVES
- US TSY 26W BILL AUCTION: BID/CVR 3.04
