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

become likely in March once the Brazilian summer is over and political activity in Congress resumes in earnest. Until then, we recommend being long BRUCLP (target 195) to take advantage of Brazil's still elevated carry. We favor C LP funding as the recent appreciation of the peso after the Presidential