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Dovish Fed Driving Peso

MEXICO
  • The dovish fed led the US dollar lower and the Mexican peso was a beneficiary. USDMXN sold off just under 2% from 20.70 down to allow of 20.3126. After making another new low during early European trade, the pair has since consolidated nearer to 20.40. Cluster of supports continue to be tested in the form of the 50-day MA at 20.33 and the 100-day MA just below here at 20.2441.
  • Continued friction between the President and the judiciary concerning the newly legislated power bill keep the domestic outlook cloudy, however a distinct lack of domestic data will likely keep the Peso at the mercy of broader dollar sentiment.

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