Summary 1/2 - MXN Lacking Momentum, Maia Upbeat on Tax Reform

MEXICO - USDMXN up to 20.22 overnight but with the bounce in risk, settles back into the range. There was little to report on the local front, hence MXN is likely to continue to trade with global factors into today, needing a catalyst to decide the next meaningful move.

• Central bank will release its economist survey with forecasts for growth, inflation and exchange rate.
• Manufacturing PMI at 1530 GMT
• President AMLO to make an address marking his second anniversary in office 1700Local/2300GMT

BRAZIL - Speaker of the Lower House Maia commented that there are enough votes in the Chamber to pass tax reform through a vote, despite the fact there may be no government support right now.

• Volatile session for USDBRL yesterday, briefly breaking sub 5.30 but then bouncing amid a poor session for risk.
• Desks have noted daily net inflows from offshore accounts, and with the bounce in equities and the commodity complex, a confirmed break of 5.25/5.30 (200day MA 5.3045) could be on the cards in the coming sessions.
• Manufacturing PMI at 1300 GMT