Rating action yet again generated......>

MEXICAN PESO: Rating action yet again generated selling pressure on MXN,

augmented by softer oil prices at the start to the week. Late on Friday, Moody's

revised Mexico's credit rating to Baa1 with a negative outlook, following the

recent downgrades from Fitch & S&P. Moody's also cut the rating of Pemex to Ba2,

keeping its outlook at negative.

- Banxico's Esquivel, AMLO's first pick to the central bank's board, urged the

President to surrender his fiscal conservatism and ramp up stimulus. President

Obrador's reluctance to take bold steps to rescue the economy have inspired

increasing worry about Mexico's position amid the coronavirus crisis.

- Mexico City Mayor told El Norte that the capital's hospitals are nearing

capacity. Mexico has declared 7,497 Covid-19 cases and 650 fatalities so far.

- USD/MXN sits +2,800 at MXN23.9761 as we type. A break above Apr 16 high of

MXN24.4312 is needed to bring Apr 6 cycle high of MXN25.7849 into play. Bears

keep an eye on Apr 13 low of MXN23.2460. A fall below there would expose Mar 27

low of MXN22.8436.

- Looking ahead, Mexico reports retail sales and CPI figures on Thursday.