USD/MXN last trades at MXN23.8675,.....>

MEXICAN PESO: USD/MXN last trades at MXN23.8675, marginally lower on the day,

consolidating yesterday's losses inspired by Banxico's monetary policy decision.

The central bank trimmed its policy rate by 50bp to 5.50%, in line with

expectations, and pointed to potential for further cuts. The decision was

unanimous, signalling lack of appetite for deeper cuts among policymakers at

present, despite pressures to Mexico's economy. The central bank's messaging

emphasised the importance of adding both monetary and fiscal stimulus.

- There has been some confusion over Mexico's strategy on re-opening domestic

industry, as Dep Health Min Gatell clarified that auto, construction and mining

companies will be allowed to restart operations in June. Econ Min Marquez said a

few hours earlier that these sectors will be allowed to return next Monday.

- The rate has been flirting with its 50-DMA lately, which intersects at

MXN23.7887 now. A break below there would open May 8 low of MXN23.5529 and,

looking further afield, Apr 13 low of MXN23.2460. Bulls need a jump above May 12

high of MXN24.4107 before targeting May 7 peak at MXN24.5381. The next

resistance above is provided by May 4 high of MXN24.8881.