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Post-Banxico USDMXN Rally Still Considered Corrective

MEXICO
  • USDMXN trades in the middle of the post-Banxico range as the bounce for equities on Friday offset the dovish tweaks to the central bank’s communication on Thursday.
  • The USDMXN rally is considered corrective, and the recent bearish theme remains intact. The pair would need to trade above 18.0800, the Nov 1 high, to strengthen a bullish case and this would expose key resistance at 18.4863, the Oct 6 high.
  • As a reminder from last week, Governor of Nuevo León Samuel Garcia officially announced a centrist independent presidential bid in next year's election, a move that could divide opposition to the ruling leftist party.

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