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USDMXN Consolidating Around 17.50 As Banxico Decision Approaches

MEXICO
  • USDMXN maintains a softer tone and last week’s extension lower and Monday’s fresh cycle low, reinforces bearish conditions. The downside focus now turns to 17.0507, the Apr 29 2016 low.
  • Consensus looks for an unchanged Banxico decision on Thursday. The full MNI preview with sell-side views is here: https://roar-assets-auto.rbl.ms/files/52935/MNI%20Banxico%20Preview%20-%20May%202023.pdf
  • According to President AMLO on Tuesday, there would be “no issues” if billionaire German Larrea’s Grupo Mexico SAB buys Citigroup retail banking unit, Banamex. “We have information that negotiations are going well,” he said. “I just need to go over the taxes aspect.”
  • Today, Mexico plans to sell 1.7b pesos of floating bonds due 2026, 1.7b pesos of floating bonds due 2028 and 1.5b pesos of floating bonds due 2030.

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