FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Pressure on Equities Prompts USDMXN Squeeze, Banxico Minutes Due

MEXICO
  • The negative reaction in equity indices following the FOMC minutes last night sparked a decent squeeze in USDMXN. Higher US yields exacerbated the 1.5% bounce from the lows that saw the pair reach 20.76 highs overnight. The pair has since pared some gains to 20.60 and the short-term technical outlook remains bearish.
  • Citi published the results of their biweekly analysts’ survey in email:
    • Mexico analysts lower 2021 CPI est. to 7.45% from 7.66% with the 2022 year-end estimate held steady at 4.16%. Additionally, the survey sees another rate hike in February, but only of a magnitude of 25bps. Results are the median forecast of about 30 analysts.
  • Today we will see the central bank minutes from the December meeting. As a reminder, Banxico hiked rates by 50bps in a 4-1 decision. The minutes may shed light on whether the board foresees a similar rate hike as likely in February. Particularly interesting will be the views of Deputy Governor Esquivel as despite him being the sole dissenter, this also represented the first time he has voted for a rate hike in the tightening cycle. Of note, this was also the final meeting with Alejandro Díaz de León at the helm.
  • December CPI will be released tomorrow, where current estimates expect the annual reading to print 7.43%.
  • Mexico’s plan to halt crude exports by 2023 could curb the size of its giant oil hedge and help boost longer-dated prices. (Bloomberg)
    • Each year, Mexico participates in one of the biggest and most secretive deals in the oil market, locking in prices of its net exports. The trade effectively makes the Mexican finance ministry one of the biggest sellers of oil contracts for 12 months ahead.
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

To read the full story

Close

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.