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USDMXN Bounces Amid Rising U.S. Yields

MEXICO
  • With US yields extending higher, EMFX is suffering this morning. Additionally, a marginal new low beneath 20.55 but no daily close has prompted a relief rally in USDMXN. With just international weekly reserves data on the docket, focus will be on the FOMC.
  • Republican senators have accused President Biden of committing unlawful acts by halting construction of the wall on U.S. southern border.
    • Lawmakers to say Biden's actions led to compromising "operational control" of the southern border, "and a humanitarian and national security crisis has ensued," according to early copy of letter shared with Politico (BBG)
  • Further headlines regarding President AMLO's power bill, this time from Canada. PM Trudeau's government is worried that the recently amended electricity law in Mexico will harm Canadian investments in the country's clean energy sector.
  • In more positive news, Mexico posted a daily rise of 175 Covid-19 deaths, 23% of general hospital beds occupied, 27% of beds with ventilators occupied.

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