EMERGING MARKETS-Latam FX set for best week this year as real nears four-month high

* Brazil's retail sales drops in March, far less than expected * Mexican inflation jumps to highest since December 2017 * U.S. jobs growth slows in April; Dollar falls By Shashank Nayar May 7 (Reuters) - Latin American currencies gained on Friday and were set for large weekly gains as weak payrolls data pushed the dollar to a more-than two-month low, while Brazil's real jumped to a near four-month high after retail sales fell less than expected. MSCI's index of Latin American currencies rose 0.9% to a near four-month high and was set for its best week since November, while stocks firmed 1.5%. Brazil's real rose 0.7% after retail sales volumes fell 0.6% in March from February, far less than the 7.0% decline forecast by a Reuters poll of economists. The real was set for its best week this year after the Brazilian central bank hiked rates on Wednesday, and flagged more strong hikes to help curb rising inflation. "The BCB continues to see the rate hike cycle only as a 'partial normalisatio