Published at 11:33 (GMT) 02 Jul

USDMXN

After Fri's strong rally, MXN saw a modest correction overnight, but against 13.39 200dma and following the expected, yet welcomed Pena Nieto election to the presidency, MXN now trades closer to 13.30, below where is 13.26, the 100dma. Global backdrop is mixed with EUR modestly weaker just below 1.265 while S&P futures are up marginally. Locally, Banxico economist survey where we expect a consolidation of the view that rates will remain unchanged for a long while, remittances that should get a boost from Mother's Day and finally IMEF occupy the agenda only to be overshadowed by election results, particularly results for Congress that if come as polls suggest, will likely drive MXN higher. In the US, Jun ISM Manufacturing is expected to decline to 52.0 from 53.5, mirroring the soft underlying tone across manufacturing surveys. May construction spending will be released alongside ISM, and we see a fall of 0.8% that will more than fully reverse recent upside as the sector remains on soft footing. KD