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USDMXN Consolidates Tuesday Recovery, Awaits US CPI

MEXICO
  • USDMXN has traded in a narrow range overnight Wednesday, after rising 0.78% yesterday in line with a firmer greenback and following the mixed set of Mexican CPI data. A still high headline rate might temper discussions of imminent easing at the February Banxico meeting, but the decline in core inflation still opens the door to a first rate cut later this quarter.
  • Following the higher-than-expected gross fixed investment data, industrial & manufacturing production are the only remaining domestic data points this week, with firm focus on the US CPI report.
  • On the political front, Jorge Alvarez Maynez, a 38-year old lawmaker in the Lower House, will be the presidential nominee for Mexico’s Citizens’ Movement Party in this year’s elections. Alvarez Maynez served as campaign coordinator for Nuevo Leon Governor Samuel Garcia’s abandoned presidential bid last year.

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