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Banamex Economist Survey Due Today, Mid-Month Inflation Later This Week

MEXICO
  • Nervous market sentiment across the first half of last week saw USDMXN trade as high as 17.3860. The pair spent the latter half of the week moderating this advance, a theme which is extending in most recent trade, with the pair slipping back below 17.06 at typing. With last week’s low around 16.85 providing the most obvious target for bears, the short-term technical parameters appear well defined.
  • The main data points this week will be mid-month CPI inflation for January and November economic activity, both released Wednesday. Inflation will have most bearing on the early Feb Banxico meeting, with analysts only expecting a slight moderation as rising non-core inflation partially offsets decelerating core inflation.
  • Today, Citibanamex will release its latest economists survey with forecasts for economic growth, inflation and monetary policy. On the political front, local reports suggest that presidential opposition candidate Xochitl Galvez will travel to the US during a week-long trip in early February to ask for international observers to monitor the leadup to the June 2nd presidential election, amidst her concerns that the government is trying to give the ruling Morena party an unfair advantage.

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