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USDMXN Extends Intra-Day Decline To 0.80%

MXN
  • Steady downside progress for USDMXN (-0.80%) on Wednesday, with the move picking up momentum on the breach of last Friday’s lows, and the pair printing a fresh seven-month low of 16.6653 in recent trade. Price action continues to narrow the gap to 16.6262, the Jul 28 2023 low, a breach of which would place the pair at the lowest level since late 2015.
  • It’s worth noting that MXNJPY (+0.70%) has resumed its strengthening trend, posting solid gains over the past two sessions and stretching this year’s advance to 6.60%. The cross is narrowing back in on the March highs at 8.8815, just one week before both Japanese and Mexican central banks hold monetary policy decisions.
  • As latest Nikkei reports highlight, the BOJ look set to discuss a negative rate exit, whereas analyst forecasts lean heavily towards Banxico initiating an easing cycle. While these specific rate decisions are unlikely to alter the short-term trajectory for MXNJPY, the accompanying guidance could be of pivotal significance going forward.

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