Forex - Mexico Flows: MXN gains 0.2% to 19.08 on supportive global backdrop. Focus on NAFTA negotiations will cap gains


 12:05 (GMT) 14 Nov

  [Forex Flows]

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Mexico Flows: MXN gains 0.2% to 19.08 on supportive global backdrop. Focus on NAFTA negotiations will cap gains (0100-TYWT-C01)

MXN has recovered below 19.10, with support from weaker global USD index and lower UST yields. Commodity prices and equities may curtail gains unless US PPI numbers surprises on the downside. Looking ahead, in a week with no domestic data, the focus is entirely to both US data and the 5th round NAFTA negotiations which will start informally on Wednesday and formally on Friday. The market is no longer optimistic on seeing any significant gain in this round of negations, and is actually concerned that differences will widen. That sentiment is likely to increase with the Mexican government announcing that is working on a memorandum in case NAFTA negotiations break down.

As mentioned above, there is no significant data in Mexico. In the US, we expect a flat Oct PPI with a subdued 0.1% increase ex food and energy. Oct's NFIB survey may give some insight on how small businesses feel about tax reform prospects. Fed speakers on Tuesday start with voting dove Evans while Yellen speaks at an ECB panel. Non-voting dove Bullard, and Bostic, a voter next year, whose stance is still unclear follow.


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