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Economic Activity Misses Expectations

MEXICO
  • The Mexican peso extended gains for a fourth consecutive week, closing at 19.83. According to CFTC data, investors further trimmed their short MXN positions for a fifth straight week.
    • Investors were short MXN to the tune of 3,554 contracts in the week ending April 20 vs 11,978 on April 13 – indicating potential rising optimism.
    • Technically, the pair maintains a bearish tone and most notable support lies at 19.5494, Jan 21 low.
  • Data just released:
    • Mexico Feb. Economic Activity -0.34% vs Est. 0.05% (BBG)
    • Mexico Feb. Economic Activity -5.06% vs Est. -4.05% (BBG)

  • Apart from the FOMC decision on Wednesday, the focus will turn to Friday's first quarter GDP readings. For reference the next Banxico meeting is scheduled for May 13th.

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