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USDMXN Breaches Support As Risk Holds Firm

MEXICO
  • Despite annual inflation printing below expectations, comments from Banxico Deputy Governor on the persistence of core inflation keeps the chances of another 50bp hike in February high.
  • Acting as a tailwind for the Mexican peso, the local currency is also remaining buoyed as global sentiment continues to improve amid the easing of Omicron-related fears.
  • USDMXN has breached noted Fibonacci support through 20.70 and attention will now turn to 20.50 and the November lows around 20.25.

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