Free Trial

Banxico Decision Due Top Of The Hour, USDMXN At Initial Resistance

MEXICO
  • 19/24 analysts surveyed by Bloomberg believe Banxico will keep the overnight rate unchanged at 11.25%. However, the remaining five are forecasting a 25bp increase.
  • Slowing headline, and core inflation, will aide some policymakers in believing the tightening cycle should conclude. However, the stickiness of wages, the jobs market and growth will prevent the bank from calling an end to further rate rises ahead.
  • Full preview including summary of sell-side views here: https://roar-assets-auto.rbl.ms/files/52935/MNI%20Banxico%20Preview%20-%20May%202023.pdf
  • USDMXN maintains a softer tone overall despite the most recent recovery. Initial resistance is at 17.7816, the 20-day EMA which has held so far on Thursday. Short-term gains are considered corrective.
  • Last week’s extension lower and Monday’s fresh cycle low, reinforces bearish conditions. The move down has confirmed a resumption of the bear trend and maintains the price sequence of lower lows and lower highs. The focus is on 17.0507, the Apr 29 2016 low.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.