The document discusses the value of Latin American currencies in the context of strong US/global growth. It suggests staying long on the Mexican Peso (MXN) against the USD, COP, and RUB due to favorable oil production prospects and financial inflow pre-pricing. The document also highlights the potential benefits for CLP/COP from terms of trade and political uncertainty, while advising caution on BRL due to structural concerns. The analysis anticipates that Latin American FX will offer more value in the coming months, with a focus on currencies with strong export exposures like CLP, PEN, and MXN. Structural concerns and balance of payments dynamics are noted as headwinds for the region.
doj/DataSet10/EFTA01451147.pdf
{"title":"FX Blueprint: Thin end of the wedge","document_date":"2014-01-09","document_type":"tabular","key_locations":["Latin America","Mexico","Brazil","Colombia","Chile"],"document_subtype":"financial analysis","key_organizations":["Deutsche Bank"],"reference_numbers":["DB-SDNY-0107392","SDNY_GM_00253576","EFTA01451147"]}