Trial now

UK Retail Sales Fell in May


Bearish Threat Still Present

Bearish Threat Still Present


Reversal Extends

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.