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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.
MEXICO
- Aided by the fact EURUSD is trading at its lowest level in twenty years, EURMXN has made fresh cycle/August lows and has breached a key support level.
- With lows overnight at 19.8806, the pair has seen decent follow through following the break of 20.0550, which had 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 yesterday, 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.”
- The focus on the domestic docket is tomorrow’s Bi-Weekly CPI data where headline CPI is expected to rise to 8.55% from 8.14% in the prior reading. While the data will be important for the central bank, most recent Banxico rhetoric points to a very high probability that they will follow the Fed at the September meeting.
- With that said, Banxico minutes for the August meeting will be published on Thursday.
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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