Letlong-daled FX forward Regulatory: Liquidity: Avg. ticket size: Avg. daily volume: Bid/ask spread: Ref. source: No restrictions; uniquely in LatAm FX forwards are deliverable Good up to 2Y normally. with a curve out to 5Y USD 20mn USD 2bn recently 5bp in USD (offshore market) MXNFVVD=DBNY, Blo

9 January 2018 FX Blueprint Theme #12: Tequila sunset - buy USD/MXN, buy BRUCLP The last few weeks of 2017 were uncharacteristically eventful in LatAm FX as the region's largest economies experience a tumultuous year-end due to a events ranging from monetary policy surprises to impeachment votes. We

the currency. Considering the almost non-existent carry, we recommend remaining neutral on USD/PEN. All in all, the tide is beginning to change in LatAm FX. While some currencies still offer some attractive carry (BRL or even CLP) and other have some (medium-term) upside potential (MXN), gradually we