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Banxico Economist Survey, April Manufacturing PMI Due At 1600BST

MEXICO
  • USDMXN edged back below the 17.00 level yesterday, amidst thin markets due to the Labour Day holiday. The pair continues to trade in narrow range today, with focus likely to remain on tomorrow US payrolls data. USDMXN is in consolidation mode, and resistance at 17.3860, the Jan 17 high, remains an important reversal trigger. On the downside, initial support lies at 16.8877, the 50-day EMA.
  • On the data front, April manufacturing PMI data will be released at 1600BST(1100ET), alongside March remittances numbers. Analysts expect remittances to rise to $5.3bn, from $4.51bn previously. Banxico will also publish its April survey of economists at 1600BST, followed by the IMEF manufacturing and non-manufacturing indicators for April at 1900BST.
  • In other news, Cemex has been raised to investment grade by Fitch, with the long-term issuer default rating rising to BBB- from BB+, with a stable outlook. Fitch cited the strengthening of Cemex's credit profile as a result of a sustainable improvement in operating cash flow generation and effective debt reduction.

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