MXN on the back foot in early trade as NBC...>

MEXICO: MXN on the back foot in early trade as NBC sources report that

"negotiators for the U.S. and Mexico failed to reach a deal during their

Wednesday meeting." NBC reminds us that "the talks at the White House came days

before the 5% tariffs on all Mexican imports were set to kick in. The Trump

administration threatens to steadily hike those tariffs up to 25% by October

unless Mexico stems the flow of migrants coming to the U.S. southern border

illegally."

- A couple of credit rating actions of note came just before the headlines:

- Fitch downgraded Mexico to Bbb; outlook revised to stable

- Moody's affirmed Mexico's A3 credit rating; outlook changed to negative from

stable

- USD/MXN surges in illiquid hours, last dealing at MXN19.8200, 200 pips off

highs, with a focus on the YtD high at MXN19.8799.