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Mid-May Inflation Data Due, USDMXN Holding Below 18.00

MEXICO
  • Amid the broad greenback strength, USDMXN is holding on to the majority of its recent gains and the recovery from 17.4207, appears set to extend. Price is through the 20-day EMA and short-term attention is on both the 18.00 handle and the 50-day EMA at 18.02. A clear break of this average would strengthen short term bullish conditions, potentially targeting a move to resistance at 18.4011, the Apr 5 high.
  • Domestic focus is on today’s mid-month inflation data for confirmation of the current process of disinflation. Data is scheduled for 1300BST/0800ET:
    • May Bi-Weekly CPI, est. -0.20%, prior 0.21%
    • May Bi-Weekly CPI Y/y, est. 6.13%, prior 6.27%
    • May Bi- Weekly Core CPI, est. 0.21%, prior 0.12%
    • May Bi-Weekly Core CPI Y/y, est. 7.49%, prior 7.59%
  • Billionaire's Spat With AMLO Threatens Investor Appeal in Mexico:
    • Last week, billionaire German Larrea woke up to find the government had seized a 120-kilometer stretch of a rail line he owns. On Monday, AMLO denied that the government had expropriated Larrea's rail; it had acted only to recover a concession, or the permit to manage the railroad.

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