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USDMXN Maintains Bullish Technical Outlook, Banxico Minutes Thursday

MEXICO
  • Despite a brief bout of volatility in early European hours, USDMXN trades close to unchanged on the session, continuing to consolidate around 18.20. The October rally has confirmed a resumption of the uptrend that started July 28 with key support having been defined at 17.3498, the Sep 29 low. Sights are on $18.6172 on the topside, the 76.4% retracement of the Mar 20 - Jul 28 downleg.
  • With inflation data out of the way, this week’s focus turns to Thursday’s manufacturing and industrial production data for August and the central bank minutes from the September policy decision. While Banxico confirmed unanimous expectations and held the policy rate at 11.25%, analysts will evaluate the minutes for any clues on the set of requirements that would be necessary to validate rate cuts.

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