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USD/MXN trades very modestly lower.....>

MEXICAN PESO
MEXICAN PESO: USD/MXN trades very modestly lower ahead of the NY crossover and
looks on track to break below the 19.00 mark and Monday's lows of 18.9892.
Sentiment is slightly firmer toward emerging markets Tuesday, with actions from
the Turkish central bank and recovering global equities helping buoy risk
appetite somewhat. USD/MXN is yet to erase the sharp move higher on Friday,
however, with the Friday low kicking in at 18.8404.
-USD/MXN vols are one of the few among EM FX to be dropping so far Tuesday (GBP
1m vols now trade at a more than 3 vol point premium over MXN), which appears to
also be helping spot sentiment also. Nonetheless, the bulk of option expiry
interest tabled to roll off this week sits north of spot, with well over
$2.25bln due to expire between 19.08-19.75 between now and Friday's NY cut.
-Retail sales take focus from here, with January figures exp. at 2.0% M/M and
1.1% Y/Y.

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