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USDMXN Probes Initial Resistance Ahead Of Banxico Decision

MEXICO
  • Initial resistance at 20.6563, the Nov 4 high was breached overnight as the dollar remained on a firm footing. Key resistance remains at 20.9790, Nov 3 high, ahead of the main event which is the central bank decision later today.
  • Analysts unanimously expect Banxico to continue their tightening cycle at the November meeting.
  • However, given the persistent upward trajectory of inflation readings and the associated pressure on inflation expectations, opinions are mixed on whether the board should accelerate the pace of hikes.
  • So far, consensus points toward another 25bp hike from 4.75% to 5.00% as the most probable outcome, with individual voting likely to come under particular scrutiny for assessing the future path of policy.
  • The full MNI preview with analyst views can be found via email or the following link:
  • https://marketnews.com/mni-banxico-preview-november-2021-acceleration-in-the-balance

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