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MXN Stands Firm Ahead Of US CPI, Banxico Decision Due Thursday

MEXICO
  • USDMXN a tad higher overnight, although narrow ranges ahead of the US inflation data.
  • After yesterday's breach of the 50-day EMA, markets will be looking for sustained weakness, possibly signalling scope for a deeper pullback, exposing 20.1196, the Oct 26 low. Initial resistance is at 20.6563, Nov 4 high.
  • For those that missed it yesterday: - The full MNI Banxico preview with analyst views can be found via email or the following link:
  • https://marketnews.com/mni-banxico-preview-november-2021-acceleration-in-the-balance
  • Today at 1630GMT/1130ET - Mexico's central bank to hold a $200m auction from its swap line with the U.S. Federal Reserve. Line to mature in 84 days.
  • In local news: The U.S. ambassador to Mexico said on Tuesday he hoped concerns could be resolved over the contentious Mexican electricity bill that has alarmed private investors, as he underlined the importance of American investment to the Mexican economy.
    • Ambassador Ken Salazar last week reiterated Washington had "serious concerns" about the initiative championed by President AMLO which aims to strengthen state control of the power market at the expense of private companies. (US News)

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