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USDMXN Testing Support Levels

MEXICO
  • USDMXN continues to make lower highs and is once again under pressure this morning, approaching last week's worst levels at 20.5862. Support is still seen at 20.5524, the Mar 3 low and of note, there is trendline support at 20.3005, drawn off the Jan 21 low.
  • Mexico stock exchange to adjust hours to 7:30am to 2pm (local) through March 31 to match U.S. markets as local markets reopen after yesterday's holiday.
  • JPMorgan upgraded Mexican stocks to overweight yesterday, in contradiction to their downgrade of Brazilian stocks. Additionally, they published their call on Banxico to remain on hold at 4% throughout 2021. They describe next week's decision as "a close call" given the dovish bias of the committee but believe that "financial stability concerns should prevail". For reference Banxico will make their next decision on interest rates on March 25th.

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