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USDMXN Firmly Back Above 20.00

MEXICO

USDMXN extending gains late in the session to test just shy of Tuesdays high at 20.10. A close around these levels will constitute the biggest daily advance since September. The BBDXY has been hugging its highs all session with the JPM Emerging Market Currency index off 1.22% today.


The squeeze in the pair was well underway amid the weakness in Latam FX overall. However, it is worth noting Esquivel's mention of the currency in the minutes, as well as affirmations from sell-side analysts of a February cut from Banxico will have added to the Peso's outflows.

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