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USDMXN Edging Lower Towards 17.00 Mark

MEXICO
  • Moving average studies for USDMXN remain in a bear-mode position, highlighting a downtrend. Recent price action confirmed a resumption of the current bear cycle and spot is narrowing the gap towards initial support at 16.9988, the Sep 20 low. Clearance of this level would signal scope for a move towards 16.6262, the Jul 28 low.
  • On Monday, Banxico Governor said that although the central bank increased inflation estimates, they are not foreseeing a change in trend, reiterating that the bank could discuss interest rate cut in Q1.
  • Pemex confirmed yesterday that on Dec. 5 it refinanced $8.3b in company debt with the help of Mexico’s finance ministry, according to a statement. For $1.8b of debt, maturity was 2024 and for $6.5b maturity was 2026.
  • Carlos Slim is building up investments in companies behind Mexico’s largest oil exploration effort just months after his business empire acquired a stake in a firm involved in the same project. (BBG)

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