Analysts at Scotiabank noted the recent development in the EM-FX space with eyes on NAFTA progress.
Key Quotes:
“The MXN is firmer, despite uneven equity markets, while the likes of the INR, TRY and ZAR retain a defensive undertone. The Banxico’s policy decision is announced Thursday (expected unchanged at 7.50%).
There is little on the agenda today and event risk later in the week (US retail sales Tuesday, Canadian retail sales and CPI Friday) may mean quiet range trading for the majors today.
US retail sales data in particular will be scanned for signs that tax cuts are boosting activity.
North American markets will also remain sensitive to signs of progress – or not – on NAFTA, with Canadian and Mexican officials suggesting progress last week and the US keen for a deal by Friday.”
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