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Third-Quarter Flash GDP Data Due, USDMXN Support Holds

MEXICO
  • Price action for USDMXN remains fairly muted, with the technical indicators continuing to highlight a bearish technical outlook. Key short-term support remains at 19.7533, the Sep 12 low. Clearance of this level would strengthen bearish conditions and pave the way for a move towards 19.6185, the Jun 10 low.
  • Speaking at a briefing on Friday, Deputy Finance Minister Gabriel Yorio said Mexico’s economy will grow next in 2023 even if there is a global economic slowdown. Mexico is expecting growth in 2022 of at least 2.4%, better than predicted.
  • Data today:
    • 1200GMT/0800ET: 3Q GDP NSA Y/y, est. 3.3%, prior 2.0%
    • 1200GMT/0800ET: 3Q GDP SA Q/q, est. 0.8%, prior 0.9%
    • 1500GMT/1100ET: Sept. Net Outstanding Loans, prior 5.22t
  • A significant release later this week will be the central bank’s economic expectations survey, specifically to get an update on medium/longer term inflation expectations.

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