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President’s Day Holiday, Banxico Decision Thursday

MEXICO
  • 16.6262 support held well last week in USDMXN, and the pair is extending a small recovery on Monday, rising 0.25% on the session. Tight ranges across G10 as we approach the plethora of central bank decisions this week, as well as the President’s Day holiday in Mexico today, should limit momentum in either direction.
  • Focus turns to the Banxico decision on Thursday, where the overwhelming consensus expect the committee to initiate monetary easing with a 25bp cut to 11.00%. Within the Bloomberg survey, there are a couple of calls for an unchanged decision, and the majority expect Banxico to maintain a hawkish/cautious tone and emphasise the data dependence going forward. Our full preview of the decision will be published tomorrow.
  • Additionally, retail sales data will be published Thursday, before economic activty and inflation figures on Friday.

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