Published at 12:37 (GMT) 02 Nov

USDMXN

With local out in All Saints holiday, MXN is having a weaker day with low volume. It has improved from European trading suggesting that US traders are more optimistic on the currency, especially after the fiscal reform was approved with minimal changes from the initial House version although it is a watered down version from the govt. proposal. The question now is whether that will be enough for rating agencies to hold off a downgrade. We are betting it will and will expect long USD positions to unload again and MXN should recover respect to the rest of the Latam currencies. We look at 13.10-13.25 range for today depending of global backdrop.