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Former Banxico Deputy Governor Speaks, USDMXN Downtrend Remains In Place

MEXICO
  • With the US out on MLK Day today and the data calendar remaining light, the Mexican peso has had a quiet start to the week, trading broadly flat against the USD since the open. Nonetheless, after the peso showing resilience in the face of stubborn US inflation data last week, the downtrend in USDMXN looks to remain in place and the short-term focus is still on 16.6262, the Jul 28 low.
  • In terms of data, nominal wages figures for December (+11.6% y/y in November) will be published at the start of this week. The focus will be more on Friday’s November retail sales data, however, with growth there expected to hold around 3.5% y/y. Meanwhile, the Morena ruling party’s presidential candidate Claudia Sheinbaum will deliver a speech in Mexico City at 1600GMT (1100ET) today. Former Banxico deputy governor Gerardo Esquivel will also speak at a Sheinbaum campaign event later in the day (2200GMT/1700ET).

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