- USD/MXN opens NorAm 21.3093, dips to 21.2695, then rises to 21.38
- Post-Trump inauguration sees USD slip, on US protectionist fears
- Safe haven JPY & CHF sought, gold & USTs rise slightly, glbl equities offered
- USD/MXN res 21.4023 10-HMA, 21.4749 21-HMA, 21.5510 Monday’s high
- Supt 21.3125 50% Fib, 21.2675 Mon Low, 21.2050 Jan 6/9 dbl bottom area
- MXN ST vol drifts higher
- MPH 50% Retracement= 470.30
Mexico reports mid-January CPI Tuesday, and is expected to rise 4.14% y/y vs. 3.48% in mid-December. If so, this would be the highest since December 2014 and supports the case for further rate hikes. Next Banxico meeting is February 9, and another 50 bp hike then seems likely. ANTAD December retail sales will be reported Wednesday, which are expected to rise 6.9% y/y vs. 5.9% in November. December trade will be reported Thursday.