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CIBC Expect Increasing Domestic Risks to Temper Banxico Easing Expectations

MXN
  • CIBC have noted that President AMLO’s intention to continue with his reform process and the increase in global yields post NFP and European parliamentary elections have kept the Peso under pressure.
  • They expect increasing local risks, especially those related to potential changes in the Judiciary, to tame expectations of rate cuts by Banxico this month and into Q3.
  • This should provide strong incentives to consider fading the upward USD/MXN move as it approaches the 18.50 mark.

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