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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.
MEXICO
- Banxico released its minutes from May 13 policy meeting, which was not 'hawkish' despite the recent rise in inflationary pressures.
- Most of the board agreed that prudent stance is needed and the trajectory of short-term interest rates will depend strongly on future CPI prints.
- The MXN strength against major crosses gives Banxico more time for policy manoeuvre (unlike Brazil that has started a tightening cycle as BRL weakness has intensified the inflationary pressures).
- As the vaccination campaign has been slower in most of the EM economies, policymakers aim to keep financial conditions as loose as possible to stimulate the economic recovery.
- USDMXN is barely unchanged, with the pair trading at the high of its 3-day range slightly below 20. Resistance to watch on the topside stands at 20.13 (50D SMA), followed by 20.23 (100D SMA). On the downside, first support stands at 19.5.
- It is interesting to see that Banxico was one of the two central banks that cut rates this year (25bps, as Indonesia).
Source: Bloomberg/MNI
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.
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