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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
MEXICO
- With a lucklustre session for EURUSD, notable broad MXN weakness throughout today's session. TRY weakness amid souring sentiment in equities is exacerbating the Peso price action.
- USDMXN now above the 76.4% Fibonacci retracement, immediate short-term resistance now resides at 21.2851, the Mar 10 high. Above here, the path seems fairly clear to the year's highs at 21.6357.
- Interestingly, barring an outsized adjustment in EURUSD, the 2021 highs in USDMXN may tie fairly closely to the major downtrend in EURMXN which currently intersects around 24.18.
- The significance of these levels and the weakness in EMFX suggests there may be some further room for MXN to weaken in the short-term.
- All the while, data deterioration and currency weakness may add pressure on the Banxico board to accelerate tightening. Indeed, Heath's comments worth noting that whether inflation is transitory or not is "irrelevant," because if CPI translates into higher costs and higher inflation expectations then problems would persist even after temporary factors vanish.
- Yesterday's low of 20.8162 marks initial support for USDMXN
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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