USD/MXN has softened thanks to the.....>

MEXICAN PESO: USD/MXN has softened thanks to the broader enthusiasm about the

well-documented STAT story re: experimental Covid-19 drug. Mexican FinMin

Herrera said that he is "very concerned" about the downgrades to Mexico's credit

rating, but he understands the position of rating agencies. He noted that Mexico

will have to wait about two months before providing a more accurate economic

assessment, adding that the gov't has several plans to support the economy. He

pushed back against projections pointing to a 10% GDP contraction this year,

calling them premature.

- Earlier on Thursday, Banxico rejected President AMLO's request for an advance

payment of the central bank's surplus on FX reserves. 

- USD/MXN last trades at MXN23.8044, ~2,200 pips lower. Bears see Apr 13 low of

MXN23.2460 as their initial target. A break here would open up Mar 27 low of

MXN22.8436. Bulls look for a rally above Apr 6 high of MXN25.7849, needed to

reinstate topside momentum.

- Mexico reports retail sales and bi-weekly CPI next Thursday.