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Local Markets Reopen After Holiday, USDMXN Trend Outlook Remains Bullish

MEXICO
  • All 20 estimates in the Bloomberg survey expect Banxico to lift the overnight rate by 50bps to 10.50% on Thursday. Yesterday’s mixed industrial activity report was the only major data release before the central bank’s decision. The full MNI preview will be published later today.
  • USDMXN trend outlook is bullish following the recent reversal from 19.0401, Nov 29 low. The 50-day EMA has been cleared and this opens 19.9920, 61.8% of the Sep 28 - Nov 29 bear leg. Initial support is at 19.3489, the Dec 5 low.

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