LatAm FX and Rates Analytics

Investment Rating - The report does not explicitly state an investment rating for the LatAm FX and Rates Analytics industry [1]. Core Insights - The report provides a comprehensive analysis of the FX performance across various Latin American countries, highlighting the relative performance of currencies against global drivers and domestic fundamentals [1][3]. - It includes a snapshot of monetary policy across Brazil, Mexico, Chile, Colombia, and Peru, indicating the current interest rates and market expectations for future changes [1][13]. - The report discusses the performance of nominal bonds and local fixed income markets, including issuance trends and foreign positioning in these markets [1][14]. Summary by Sections FX Performance - The report presents a summary of FX performance over different time frames, indicating a mixed performance with YTD changes showing a decline for several currencies [3]. - For instance, the Brazilian Real (BRL) has shown a YTD decline of -6.6%, while the Mexican Peso (MXN) has decreased by -2.9% [3]. Monetary Policy Snapshot - The monetary policy snapshot indicates that Brazil's current interest rate is 10.55%, with expectations for slight adjustments in the coming months [1][13]. - Mexico's interest rate is currently at 5.62%, with a projected path indicating a potential increase [1][13]. Local Market Analytics - The report details the local fixed income market dynamics, including recent and upcoming auctions, and the positioning of foreign investors in local bonds [1][14]. - It highlights that Brazil and Mexico are key players in the local fixed income market, with significant foreign interest [1][14]. FX vs Global Drivers - The analysis includes the beta of various currencies to global commodities such as oil and copper, indicating how these currencies respond to global market movements [1][7]. - For example, the report notes that the MXN has a beta of -0.30 to oil, suggesting a negative correlation with oil price movements [7]. FX vs Domestic Fundamentals - The report examines the relationship between currency performance and domestic economic fundamentals, such as current account balances and fiscal positions [1][9]. - It indicates that the RUB and ZAR have shown significant changes in their FX performance relative to their current account balances [9][11].