MEXICO: USDMXN Surges as Hawkish Fed Outweighs Cautious Banxico
* Post-Fed dollar strength continues to play out nicely against the Mexican peso on Wednesday, with the most recent price extension amplified by yesterday's break of trendline resistance, drawn from the year's high. Topside momentum has built nicely above this line break around 17.25, and the pair is currently testing the 17.40 mark ahead of the NY crossover. * While relative optimism surrounding trade talks with the US and a cautious leaning Banxico had been viewed as significant positives for the peso across much of 2024, the hawkish Fed meeting last week appears to be dominating the short-term narrative, bolstered by the latest technical developments. * On the topside, the next levels to note are at 17.5390 (Jul 29 high) and 17.6764 (Jun 24 high), which could potentially come into play over Thursday's Banxico decision should the committee be more upbeat on the recent progress for inflation. * It's worth noting that ahead of tomorrow's decision, July economic activity and mid-Sep CPI data are scheduled.
* Post-Fed dollar strength continues to play out nicely against the Mexican peso on Wednesday, with the most recent price extension amplified by yesterday's break of trendline resistance, drawn from the year's high. 40 mark ahead of the NY crossover. * While relative optimism surrounding trade talks with the US and a cautious leaning Banxico had been viewed as significant positives for the peso across much of 2024, the hawkish Fed meeting last week appears to be dominating the short-term narrative, bolstered by the latest technical developments.
6764 (Jun 24 high), which could potentially come into play over Thursday's Banxico decision should the committee be more upbeat on the recent progress for inflation. * It's worth noting that ahead of tomorrow's decision, July economic activity and mid-Sep CPI data are scheduled.