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May Retail Sales, Mid-month CPI Due Next Week

MEXICO
  • USDMXN has dipped by 0.3% in recent trade, bringing the pair back below initial firm resistance at 17.929, the 20-day EMA. The move unwinds some of yesterday’s sharp gain, which saw the pair briefly pierce the 18 level. Yesterday’s move came amidst a firmer footing for the dollar and pressure on equity markets, which lifted USDMXN more than 2% higher at one point, before gains were pared. Above here, more notable resistance is found at 18.5988, the Jun 28 high.
  • Yesterday’s move also came as President-elect Sheinbaum announced three more members to her cabinet. She is still to say who she will appoint as Pemex CEO, saying that she’s reviewing profiles of who will run the company. On the data front, the calendar is light today. Next week, May retail sales are due on Monday, followed by mid-month CPI data for the first half of July on Wednesday.
  • In other news, US Secretary of State Blinken met with Mexican Foreign Secretary Barcena on July 17, according to a statement, when they discussed migration issues. Blinken noted Mexico’s efforts to deter irregular migration, which have lowered encounters at the US-Mexico border.

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