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Local Holiday Today, Banxico Decision Thursday

MEXICO
  • Local holiday in Mexico today which has the potential to impact liquidity throughout the session and make MXN particularly sensitive to a surprise in the US data. Moving average studies remain in a bear-mode position, highlighting a downtrend.
  • A marginal improvement for core inflation last month will not be enough to change the dial for policy makers at Mexico’s central bank this week. The overnight rate will be maintained at 11.25% and in line with the most recent rhetoric from the Banxico committee, discussions over potential easing are like to commence in Q1 next year.

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