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USDMXN Slowly Unwinds Post-Banxico Rally

MEXICO
  • A very quiet week on the docket leaves USDMXN susceptible to any surprises from today’s US data. The peso has traded on a slightly firmer footing this week, bolstered by the comments from Governor Rodriguez on no December cut and a softer greenback.
  • As we noted yesterday, the post Banxico rally is considered corrective, and a bearish technical theme remains intact. The pair would need to trade above 18.0800, the Nov 1 high, to strengthen a bullish case whereas on the downside, a move below 17.2833, the Nov 3 low, would resume the bear leg.

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