MEXICO: USDMXN At One-Month Lows As Bearish Theme Remains Intact
Nov-12 11:56
- USDMXN price action is muted ahead of the NY crossover, with the pair holding near 1-month lows around the 18.30 handle. Gains for the peso yesterday came amid encouraging comments from Economy Minister Ebrard on US trade talks, which he said he hopes to conclude this month. Ebrard said that he will probably travel to the US to conduct the negotiations.
- For USDMXN, a bearish theme remains intact, with sights on 18.2008, the Sep 17 low. A breach of this would open 18.1837, the 61.8% retracement of the Apr 9 ‘24 - Feb 3 bull leg, ahead of the 18.000 handle.
- On the data front, the calendar remains light for the rest of the week, with ANTAD same-store sales figures potentially crossing at some point. Next week’s calendar is busier, with final Q3 GDP stats and September economic activity data, as well as the minutes to Banxico’s recent MPC meeting where it delivered another 25bp cut to 7.25%. Speaking earlier this week, Banxico Governor Rodriguez said that she sees a cut of the same magnitude as likely in December, while there is no predetermined path for next year, with incoming data key.
- Elsewhere, Deputy Finance Minister Maricarmen Bonilla is due to speak at a pension fund association event on retirement funds investment impact in the Mexican economy. Meanwhile, auto association AMIA will hold an event on the global challenges for the autos sector from 1900GMT(1400ET).
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