EFTA Document EFTA01451178

9 January 2014 FX Blueprint: Thin end of the wedge Theme #1 0. Pesos no prickly pair • Cyclical Lat Am FX offers value in an environment of strong US/global growth. • Stay long MXN vs. USD, COP and RUB on back of FIN inflow pre-pricing and oil production prospects. Long CLP/COP should benefit from terms of trade and political uncertainty in the latter. Stay cautious on BRL because of structural concerns, weak fundamentals and less BCB intervention appetite. After 2013's annus horibi