Daily Outlook for Mxn

Quotes from Commerzbank Corporates & Markets:

-Last week the Mexican peso was one of the losers amongst the EM currencies. It seems unjustified that the peso of all currencies should have suffered like that. Compared with many other countries of the segment Mexico is in a better position fundamentally. As the US economy is on a solid recovery path Mexico is likely to benefit from the strong economic independence on its neighbour.

-Admittedly that is not yet obvious in the economic data. The monthly economic indicator as well as industrial production in particular have been disappointing recently. This week the peso might be allowed a breather. There is no important data due for publication in the US and as a result there is a lack of negative momentum.

-Things are only going to get interesting in Mexico on Friday when retail sales for November are due for publication. As a result we see good chances for a correction following the strong down moves in USD-MXN. We expect the peso to appreciate during the course of the year as a result of the solid fundamental data and the reform successes and therefore periods of weakness such as the current one should be used as entry levels. The material has been provided by InstaForex Company – www.instaforex.com

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