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MEXICO: USDMXN Extending Losses, Remains 1.2% Higher on Week

MEXICO
  • With risk gradually recovering as the crowdstrike impact diminishes, USDMXN (-0.71%) has slowly been edging lower on Friday, partially reversing yesterday's strong rally. The pair remains around 1.3% higher on the week given the broader risk off theme across equity markets and as the increased odds of a Trump presidency weigh on the neighbouring currency.
  • Additionally, multiple analysts had highlighted sub 18.00 levels as attractive for dip buyers, given the domestic political uncertainty that lingers around the upcoming Sheinbaum administration. Price action this week has seen the 20-day EMA be pierced (intersecting today at 17.9215), however, most notable resistance is not found until 18.5988, the Jun 28 high.
  • May retail sales are due on Monday, followed by mid-month CPI data for the first half of July on Wednesday. The next Banxico decision falls on August 08.

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