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USDMXN Gravitating Back Towards Recent Lows

MEXICO
  • Despite the firm bounce to 18.1790 in the aftermath of Fed Powell’s remarks, the Mexican peso continues to trade resiliently with USDMXN creeping back towards the 18.00 handle on Wednesday. This keeps the focus on key support at the 2018 lows of 17.9401 which price came close to testing last Friday.
  • Mexico’s central bank will sell up to 35 billion pesos of Cetes and Bondes F in an auction at 10:30am local time.
  • The focus on the domestic docket this week remains on Thursday’s February inflation data where core CPI is expected to drop to 8.35% Y/y.

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