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MXN Positioning Indicators Continue To Deteriorate

MEXICO
  • According to the latest CFTC data, bearish Mexican peso positions increased for the fifth time in six weeks, pushing them to the highest since February 2017.
    • Non-commercial investors were short MXN to the tune of 43,289 contracts as of Oct. 26 vs 38,571 short contracts a week prior, Despite the Peso gaining 0.17% between this period, USDMXN has subsequently resumed its uptrend, gradually ascending from moving average support sub 20.20 and aided by the strong recovery in the greenback on Friday.
  • Following a breach of firm short-term resistance at 20.5975, Oct 15 high, bearish technical pressure has been eased and the focus turns to the October highs around 20.90.
  • Reports are that there will be no AMLO press conference today due to the local holiday.
    • 1500BST/1100ET: Central Bank Economist Survey
    • 1500BST/1100ET: Sept. Remittances Total, est. $4.48b, prior $4.74b
    • 1800BST/1400ET: Oct. IMEF Manufacturing Index SA, prior 49.8
    • 1800BST/1400ET: Oct. IMEF Non-Manufacturing Index S, prior 50.1
  • In local news: A Pemex pipeline exploded in Puebla, killing at least one person and injuring 15 others, President AMLO said via Twitter.
    • Pemex now has the fire under control and response teams have been at the site since the early hours of Sunday to keep families who live nearby safe.

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