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Same-Store Sales Data Due, Pemex Ratings Downgraded By Moody’s

MEXICO
  • The Mexican peso is trading firmer at the start of the week, following Banxico’s decision to keep rates unchanged at 11.25% last Thursday. USDMXN is approaching last week’s lows, close to initial support around the 17.00 handle. Key support and the bear trigger, lies at 16.7852, the Jan 8 low. On the data front, it is a quiet week in the domestic calendar. ANTAD same-store sales data for January will be released today (prior 5.2% y/y) and nominal wages for January will also cross (prior 9.0%). The main focus will be on tomorrow’s US CPI data.
  • In other news, Moody’s downgraded Pemex ‘s credit rating to B3 from B1 on Friday, while maintaining the negative outlook. Moody’s said the cut reflects its assumption of a probable shift in the government’s willingness to support the full service of Pemex’s debt in the next few years. This is due to both Pemex’s expanding cash needs and also the government’s own fiscal position.
  • Meanwhile, Audi’s unionised workers at its plant in Puebla state, who have been on strike since Jan 24, voted to reject the company’s proposal for a 7% pay rise over the weekend. The union requested a pay increase of 10% and 5% in other benefits.
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  • The Mexican peso is trading firmer at the start of the week, following Banxico’s decision to keep rates unchanged at 11.25% last Thursday. USDMXN is approaching last week’s lows, close to initial support around the 17.00 handle. Key support and the bear trigger, lies at 16.7852, the Jan 8 low. On the data front, it is a quiet week in the domestic calendar. ANTAD same-store sales data for January will be released today (prior 5.2% y/y) and nominal wages for January will also cross (prior 9.0%). The main focus will be on tomorrow’s US CPI data.
  • In other news, Moody’s downgraded Pemex ‘s credit rating to B3 from B1 on Friday, while maintaining the negative outlook. Moody’s said the cut reflects its assumption of a probable shift in the government’s willingness to support the full service of Pemex’s debt in the next few years. This is due to both Pemex’s expanding cash needs and also the government’s own fiscal position.
  • Meanwhile, Audi’s unionised workers at its plant in Puebla state, who have been on strike since Jan 24, voted to reject the company’s proposal for a 7% pay rise over the weekend. The union requested a pay increase of 10% and 5% in other benefits.