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USDMXN Edges To Fresh Weekly Lows, Eyes Key Technical Support

MEXICO
  • USDMXN (-0.29%) continues to erode the strong price surge seen on January 16, and is now printing below 16.90 to register fresh weekly lows. This continues the short-term bearish price action this week following the breach of the 17.00 handle and signals scope for a move towards the key support at 16.7852, the Jan 8 low. A break of this level would resume the technical downtrend.
  • Earlier headlines showed that BlackRock is positive on currencies and local bonds of emerging markets including Brazil, Mexico and Indonesia. “We think their currencies are going to perform and yields are attractive,” said the chief investment officer of global FI, adding that these are “places where you are seeing tangible improvement in inflation”.
  • Mexico’s February consumer confidence is expected to tick up to 47.3 from a prior reading of 47.1. The government will also release data on vehicle production and exports for February. Later this week, the focus turns to February CPI data with implications for Banxico’s MPC meeting on March 21.
  • Pemex approved a sustainability plan through 2030 that includes reducing methane emissions by 30%, in a move that may pave the way for ESG investors to return to the world’s most indebted oil producer.
  • Elsewhere, presidential candidates Xochitl Galvez and Claudia Sheinbaum will hold campaign events today and President AMLO will give his regular daily press briefing.
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  • USDMXN (-0.29%) continues to erode the strong price surge seen on January 16, and is now printing below 16.90 to register fresh weekly lows. This continues the short-term bearish price action this week following the breach of the 17.00 handle and signals scope for a move towards the key support at 16.7852, the Jan 8 low. A break of this level would resume the technical downtrend.
  • Earlier headlines showed that BlackRock is positive on currencies and local bonds of emerging markets including Brazil, Mexico and Indonesia. “We think their currencies are going to perform and yields are attractive,” said the chief investment officer of global FI, adding that these are “places where you are seeing tangible improvement in inflation”.
  • Mexico’s February consumer confidence is expected to tick up to 47.3 from a prior reading of 47.1. The government will also release data on vehicle production and exports for February. Later this week, the focus turns to February CPI data with implications for Banxico’s MPC meeting on March 21.
  • Pemex approved a sustainability plan through 2030 that includes reducing methane emissions by 30%, in a move that may pave the way for ESG investors to return to the world’s most indebted oil producer.
  • Elsewhere, presidential candidates Xochitl Galvez and Claudia Sheinbaum will hold campaign events today and President AMLO will give his regular daily press briefing.