FX: Short-Term Weakness For Regional Majors

Concerns over a Greek default and a slowdown of the global economy have put downside pressure on Latin FX. While we believe that robust fundamentals remain supportive of our bullish view on these currencies in the medium term, risk aversion may see capital continuing to flow away from emerging markets and into safe haven assets such as US Treasuries and German Bunds in the short term. If the US Dollar Index breaks through resistance around the 76.00 level, we may consider revising our bullish medium term outlook for Latin

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