MXN continues to trade with a..........>

MEXICAN PESO: MXN continues to trade with a renewed sense of normalcy following

the tariffs agreement with the US struck over the weekend. USD/MXN keeps the

downside under pressure Tuesday, with the 100- and 50-dma providing the

immediate support lines at 19.1414 and 19.0947 respectively. The outlook is

looking far more balanced now with USD/MXN 1m risk reversals now sitting almost

exactly inline with the YTD average at 1.3 points in favour of calls. Resistance

sits at the 19.3606 level for those looking for MXN to pullback, marking the

61.8% Fib retracement of the 19.8799 - 19.0396 move. 

-Attention immediately turns to data due later today including April industrial

and manufacturing production at 1400BST. Over the medium-term, however, markets

will be eyeing whether the US-Mexican trade relationship has been fully repaired

and supply chains are still intact.