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Continued MXN Resilience, Focus On CPI & Banxico Next Week

MEXICO
  • MXN continues to be extremely resilient despite yesterday's equity sell-off and rout in oil markets. A close below the 50-day MA at 20.3373 may suggest a bearish development for the pair. Still yet to break yesterday's lows at 20.2829 and the 100-day comes in at 20.2365.
  • An extremely quiet data week comes to an end. Focus turns to next Wednesday's mid-month CPI release and Thursday's retail sales and economic activity data.
  • **Banxico will also meet on Thursday afternoon, where initial analysts' estimates suggest a hold at 4%, however, there is likely to be a divergence of opinion on whether there remains the 'window of opportunity' to further cut the overnight rate. Of course we will provide a full preview of the event with analyst views.

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