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USDMXN Nears On Key Resistance

MEXICO
  • Despite a consolidation for the Bloomberg dollar index overnight on Tuesday, USDMXN is extending on Monday’s significant rally, rising a further 0.45% to 20.57.
    • The move higher continues to threaten a recent bearish theme, exposing resistance at 20.6378, the Apr 28 high. It marks an important level and a break would suggest potential for further strength.
  • An extremely light week on the domestic data calendar keeps local assets at the mercy of broader global developments as we approach tomorrow’s FOMC decision and latest summary of economic projections.
    • Domestic focus centres around next Thursday’s Banxico decision.

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