Week‐ahead highlights
EPFR reported another strong week of outflows, with hard currency funds recording US$1.4bn in outflows, while local currency’s outflows were smaller, but still a strong exit of US$0.9bn. Although in the near term, LATAM FX weakness is likely to remain “indiscriminate” as positioning lightens, we expect fundamentals to kick‐in over the next few weeks, leaving room for alpha generating intra region trades. For now, the “pain trade” remains dominant.
Read full report: FX Daily
Scotiabank