USD/MXN briefly fades back to unch.....>

MEXICAN PESO: USD/MXN briefly fades back to unch. levels as European traders

filter in, then bounces 150 pips. The pair received a small lift in the NY/Asia

crossover as the U.S. Commerce Dep't deemed that domestic producers are being

harmed by imports of fabricated structural steel from China & Mexico & will

therefore instruct Customs & Border Protection to collect cash deposits from

importers of such steel. Mexican policymakers played the accusations down

(deemed an "ordinary" anti-dumping probe) & quickly sought to separate the issue

from USMCA, as well as stressing that the move wasn't linked to prev. Trump

threats re: tariffs. Several bank desks hold a similar opinion, allowing the

fade in the pair. Also worth highlighting that a group of U.S. Democrats have

urged the Trump admin not to move forward with the ratification of USMCA until

outstanding concerns have been dealt with in a bipartisan manner.

- Rate back below trendline support drawn from the April 2018 low (MXN18.9322

today) after a close below on Monday. Consolidation below would have bears

starting to look to the YtD low. Bulls need to reclaim the level & consolidate.

- Mexico's June CPI reading is due to be released today.