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Pressure On Equities Lifts USDMXN

MEXICO
  • The pressure on equities finally filtering through to the dollar, prompting USDMXN to trade back above 20.00 overnight. 19.80 appears to be solid short-term support as risk sentiment sours in global markets.
  • Bear steepening in play in Mexico TIIE swaps curve yesterday. Swap rates rose between 7 and 15 basis points. 5-yr swap rates approaching back to April's highest levels and double top at 6.1%.
  • 10:30am: Banxico to swap Bondes D due in 7 to 70 days for longer term ones - https://www.banxico.org.mx/apps/stdview.html?url=/apps/dao-web/4/36/2/convprimaperpubnew-1.html
  • Data releases today before Banxico decision tomorrow afternoon:
    • 1200BST/0700ET - March Manufacturing Production (Est. 2.8% y/y, Prior -4.7%)
    • 1200BST/0700ET - March Industrial Production NSA (Est. 0.6% y/y, Prior -4.5%)
    • 1800BST/1300ET - April Formal Job Creation (Est. --, Prior 88.8k)

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