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Firmer Risk Appetite Underpins Peso

MEXICO
  • Monday’s dip in risk sentiment and associated greenback strength saw USDMXN pop to 18.15 before slowly reversing into the close. Firmer risk appetite today is underpinning the bid for the peso which sees USDMXN grind back below the 18.00 mark. It is worth noting that MXN has seen its one-month implied volatility sink to 11.5% from 17.8% in just one month.
  • The focus remains on 17.8981, the Mar 9 low. A breach of this level would open 17.5746, the Aug 25 2017 low. Initial firm resistance moves down to 18.3987, the 50-day EMA. A fairly quiet week on the data front with February retail sales headlining on Thursday.

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