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Covid Deaths Surge, Mex Bi-Weekly CPI

MEXICO

USDMXN is continuing its strong performance from yesterday. After failing below 19.60, the path of least resistance was clearly higher yesterday and the USD squeeze continues with the pair up another 1.00% at 19.93. A move back to the year's high of 20.26 cannot be ruled out, especially given Mexico continues to report record daily rises of covid-19 deaths, yesterday reporting a further 1,803.


News this morning is that the Mexican government is preparing a banking product to help migrant workers change their dollars as an alternative to the Banxico bill proposed last month that stirred market volatility. AMLO was fairly clear that the bill would be changed on Wednesday, detailing that he doesn't want conflict with international bodies on Banxico bill.


*Today we have Mex Bi-weekly CPI which may give further clues to Banxico ahead of their important February meeting where some analysts believe the easing cycle may recommence.

  • 1200GMT/0700ET - Mexico Jan Bi-Weekly CPI m/m Expected 0.42% vs prior 0.19%
  • 1200GMT/0700ET - Mexico Jan Bi-Weekly CPI y/y Expected 3.25% vs prior 3.08%
  • 1200GMT/0700ET - Mexico Jan Bi-Weekly Core CPI m/m Expected 0.16% vs prior 0.08%

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