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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
MXN
- USDMXN rose back above 20.00 late last week as the USD bid gained traction and weakness in equity markets shook the entire LatAm FX basket. However, despite this bounce, the ‘super’ peso continues to show a good deal of resilience which becomes evident when looking at the recent trajectory for EURMXN.
- Obviously being helped by the fact EURUSD has just fallen to the lowest level in twenty years, EURMXN has made fresh cycle/August lows below 20.10 and is now breaching a key support level.
- The focus will now turn to whether the pair can sustain a break below the 20.0550 mark which has been a very significant support point, dating back to 2017 and was very well respected around the onset of the pandemic in 2020.
- As noted earlier, Goldman Sachs said “for those looking to be long LatAm FX, we prefer staying short EUR/MXN, which allows for exposure to high LatAm yields, but with a tighter connection to a still-strong US growth outlook, and somewhat less vulnerability to further wobbles in China or the commodity complex.”
- Key short-term focus will be on the European flash PMI’s out tomorrow morning with particular focus on Germany, given the developments over gas prices, Rhine water levels and inflation crimping business confidence indicators. Attention then turns to Jackson Hole and associated commentary from Fed Chair Powell.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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