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Focus On Both Local and US Inflation Data

MEXICO
  • A slightly softer print for March Gross Fixed Investment just released at 1.4% versus 2.3%.
  • The week's data highlight is undoubtedly the May CPI report that will be released on Wednesday where the headline annual rate is expected to drop back below 6% to 5.86% y/y.
  • Thursday's US CPI should be the highlight for broader global sentiment.
  • USDMXN has extended the move seen on Friday following US Non-Farm Payrolls. The sharp move lower from 20.20 has increased to around 2% with the pair currently below 19.80 and potentially eyeing the May lows seen at 19.72.
  • Worth noting a slightly larger than average expiry for today's NY cut:
    • USD/MXN: Mxn19.65($507mln)

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