Free Trial

USDMXN Bounces Ahead of CPI and Banxico Minutes

MXN

USDMXN tests first swing projection support at 19.6037 and bounces amid broader dollar buying. After breaking below the double bottom at 19.70 yesterday we have now retraced and trade up 1.12% on the day at 19.88 heading into CPI.

1200GMT/0700ET - December CPI:

  • M/M Expected 0.39% vs 0.08% Prior
  • Y/Y Expected 3.16% vs 3.33% Prior
  • Core M/M Expected 0.56% vs a prior reading of -0.08%.

Banxico members have been vocal on the data dependency of their decision making. The short-term surge in the annual print to around 4% prompted a pause in the easing cycle. Recent lower readings have eased concerns and bolstered expectations of inflation returning to target over the policy horizon. This was evident in two members voting for another 25bps cut at the previous meeting compared to just Heath in the 4-1 split beforehand.

We will find out who the second voter for a cut was at the minutes at 1500 GMT/1000ET which I will preview shortly.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.