Mexican Peso hovers near the 50-day SMA at 20.11, with the USD/MXN showing minimal movement after US PMIs data. Banxico is widely anticipated to cut rates following encouraging November inflation figures, with most economists predicting a 25 bps reduction. Anticipation builds around upcoming rate decisions from the Fed and Banxico. The Mexican Peso begins the week on the back foot, yet it remains near the 50-day Simple Moving Average at 20.
10 The USD/MXN remains upwardly biased, though it seems likely to edge lower in the near term. Momentum shifted bearishly with the Relative Strength Index falling below its neutral level. If sellers can hurdle some support levels, the exotic pair will see further downside. The 50-day Simple Moving Average at 20.08 continued to cap the USD/MXN fall. If surpassed, the next stop would be the 20.00 figure, with further drops seen to the 100-day SMA at 19.71. A breach of the latter will expose 19.50.