Calm session w COP rallying to close +60bps. We’ve highlighted how “exhausted” USD buying felt after >4500 a few days ago and yday really reflected that. Interesting that the balance of flows from model accts was still passive RHS yday, but macro funds were cutting USD longs > aggressively while fixes last few sessions have also traded heavy.
Our trader has been waiting on re-buying USD/COP given this idea that LHS flow would overwhelm the market. We are getting close to levels where we want to re-engage, just waiting for USD unwinds to feel cleaner.
Local news meanwhile is v quiet. BanRep economist survey just out, expectations for 50bp cut in Dec and Jan, and rates going down to 6.25 by Oct 25
