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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.
MXN
- The rapid rise in USDMXN over the previous five trading sessions was halted today as the pair rejected the October highs just above 20.90 once again.
- Fresh highs at 20.9117 represented a breach of the Oct 12 high, however, the breach failed to spark any further momentum buying, with the rally largely running out of steam.
- The consolidation lower (-0.55%) had multiple aspects in its favour on Tuesday, including pre-FOMC dynamics, a local holiday and continued buoyancy for global equity indices supporting risk sentiment.
- A clear break of 20.90/91 would signal scope for gains above 21.00. Further out, 21.1550 beckons, 76.4% retracement of the Mar - Jun sell-off. On the downside, initial support is seen at 20.4070, the 20-day EMA.
- Last week's weaker-than-expected activity data, followed by a negative Q3 GDP print have bolstered MXN headwinds overall. The data does raise questions for a continued data-dependent central bank board – although the most recent inflation expectations will likely keep another quarter point hike as the most likely outcome from Banxico next week.
- Developments to closely monitor as we approach the end of the year remain President AMLO's energy reform as well as the upcoming Banxico governorship transition
MNI/Bloomberg
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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