Intervention talks hovering over Banxico – TDS

Strategists at TD Securities remain wary about the likeliness of intervention by Banxico in the very near term.

Key Quotes

“Though highly dependent on broad USD direction vs. EM, we remain focused on MXN as Banxico is likely watchingUSDMXN closely in relation to broad Latam and EM FX performance”.

“Though the market remains very jumpy at the expectation that we may see intervention soon, we believe that while the context for intervention is building, there is not yet an obvious case”.