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Risk Off/Regional Spillovers Moderately Pressure Peso

MEXICO
  • USDMXN trades around 0.4% higher on Tuesday as weakness for the Chinese Yuan and some renewed pressure on equities moderately weigh on the peso. The focus remains on resistance at 17.3959, the Jul 7 high. A clear break of this level would signal scope for a stronger recovery and open 17.5977, the Jun 5 high. The broader trend condition remains bearish for now and moving average studies continue to highlight a downtrend.
  • A light week for domestic data keeps attention on June retail sales which are due on Friday.

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