Mexico CB Gov Heath: We will have to wait till December see if core inflation reaches peak

• We will have to wait until December to see if core inflation reaches peak
• we'll have to see what US Federal Reserve Federal Reserve The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the Read this Term does with regards to its rates hiking cycle
• core inflation is the most important variable it is analyzing
• will have to compare accumulated interest rate hike between Banxico and US Fed

Deputy Governor Espinosa adds:

• need to look for clear inflection point in headline and core inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term
• what US the Fed does is important variable but underscores Banxico is autonomous
• sometimes we go in line with US Fed, sometimes we don't

Gov Esquivel adds:

• Banxico rate hikes could begin to deviate from Fed

Looking at the long-term weekly chart of the USDMXN, the price moved to a new low going back to March 2020 this week, and moved further away from a swing area between 19.4099 and 19.5950 (see yellow area in the chart below). The price is currently trading at 19.3700, and moved toward the lower end of that swing area. It would take a move above to give the buyers more confidence than a low may be in place.