Free Trial

USDMXN Pressuring 19.00 Handle As Domestic Concerns Dominate

MEXICO
  • USDMXN (1.7%) continues to trade in a very resilient manner, with the moderate move lower post US CPI extremely short-lived. The pair once again approached the 19.00 handle, and briefly extended the post-election rally to over 12%.
  • As noted, the path of least resistance clearly remains higher for the pair as market participants continue to speculate over the post-election trajectory for constitutional reforms in Mexico.
  • Above here, a cluster of medium-term highs around 19.20 represent significant peso support.
  • In similar vein to their Brazilian counterparts, we are monitoring a notable divergence between local and US rates, with 10-year TIIE swap rates rising an impressive 20bps and the curve bear steepening.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.