MEXICO: Focus On Updated Inflation Forecasts Following Softer Data Earlier Today
- 20 minutes until the Banxico rate announcement. All analysts are expecting an unchanged decision, keeping the overnight rate at 11.25%, in line with prior guidance from the committee.
- Markets will pay attention to the updated set of inflation projections for further clues on when an easing cycle can be expected, especially after this morning’s softer than expected headline and core bi-weekly figures.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
US: White House Press Conference Underway Shortly
White House Press Secretary Karine Jean-Pierre is shortly due to brief the press after another day of mixed messaging on a debt limit deal.
- The presser is scheduled to begin momentarily and can be watched here: https://www.whitehouse.gov/live/
- Today's presser will be Jean-Pierre's first appearance in front of the White House press pack since Biden arrived back from G7 engagements in Japan and the first opportunity to face questions on yesterday's debt limit meeting between Biden and House Speaker Kevin McCarthy (R-CA).
USDJPY TECHS: Fresh Trend High
- RES 4: 140.57 Bull channel top drawn from the Jan 16 low
- RES 3: 139.59 50.0% retracement of the Oct - Jan bear cycle
- RES 2: 139.00 Round number resistance
- RES 1: 138.91 High May 23
- PRICE: 138.58 @ 16:03 BST May 23
- SUP 1: 137.29 Low May 18
- SUP 2: 136.05/134.85 20- and 50-day EMA values
- SUP 3: 133.50 Low May 4
- SUP 4: 133.02 Low Apr 26 and a key near-term support
USDJPY bullish conditions remain intact - a fresh trend high today reinforces current conditions. A key resistance zone between 137.77-91, the May 2 and Mar 8 high respectively, has recently been cleared, confirming a resumption of the uptrend that started on Jan 16. This opens 139.00 and 139.59, a Fibonacci retracement. Initial firm support is seen at 136.28, the 20-day EMA. Key support is far off at 133.50, the May 4 low.
EURGBP TECHS: Bear Flag
- RES 4: 0.8875 High Apr 25 and key short-term resistance
- RES 3: 0.8835 High May 3
- RES 2: 0.8767 50-day EMA
- RES 1: 0.8729 20-day EMA
- PRICE: 0.8677 @ 15:53 BST May 23
- SUP 1: 0.8661 Low May 11
- SUP 2: 0.8649 76.4% retracement of the Dec 1 - Feb 3 bull run
- SUP 3: 0.8593 Low Dec 15 2022
- SUP 4: 0.8562 Low Dec 13 2022
EURGBP slipped through the London close, narrowing the gap with first support at Friday’s 0.8668. The trend condition is bearish and the latest pause appears to be a bear flag. The recent breach of 0.8719, Mar 15 low, confirmed a resumption of the bear cycle and this has opened 0.8649, a Fibonacci retracement. Initial firm resistance is at 0.8729 the 20-day EMA. The 50-day EMA intersects at 0.8767 where a clear break is required to signal a reversal.
