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Title 42 Expiration in Focus as USD/MXN Downtrend Persists

MEXICO
  • Domestic focus remains on the looming expiration of the Title 42 migration rule, after which officials on both sides of the border foresee 'chaos' and a sustained surge in migrant crossings into the US. The topic is likely to remain a focus for Mexican officials, who have already committed to reinforcing consular assistance to safeguard the rights of Mexican citizens.
  • USD/MXN holds close to YTD lows printed overnight (17.5353 touched)- helping tip MXN to be one of the best performers in EM this week. This further reinforces the downtrend in the pair, with markets eyeing downtrendline support drawn off the Nov'22 low for direction (ref today at 17.1843).
  • The latest downleg for the pair has tipped the 14-day RSI into oversold territory for the first time since early March, suggesting momentum could slow from here, despite the persisitent downtrend.

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