MXN: More Weakness In H109

With the Mexican peso having broken decisively through short-term support to close at MXN14.04/US$ on January 22, we expect the next key break to be to the downside, as Mexico's economic outlook deteriorates and risk sentiment remains muted. A break through support of MXN14.34/US$ would see the unit hit a record low against the US dollar, which in our view would presage a move towards our short-term target of MXN14.50/US$.

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