Ella 
USD/MXN remained bearish as it hovered around 17.2000 during the Asian session on Wednesday. However, the USD/MXN pair found upward support after Tuesday’s Federal Reserve meeting minutes revealed a mildly hawkish tone.
Federal Reserve Board members said they could tighten monetary policy further if other data fail to show the Federal Reserve is making progress toward its inflation target. Committee members also agreed that policy should remain restrictive for an extended period at least until inflation falls clearly and steadily toward the Fed’s target.
The U.S. Dollar Index (DXY) is struggling to extend its gains and is currently hovering around 103.60. The U.S. dollar (USD) continues to face resistance despite a rise in U.S. Treasury yields on Wednesday. As of press time, the 10-year U.S. Treasury yield and the 2-year U.S. Treasury yield have risen to 4.41% and 4.88% respectively.
Mexican retail sales are expected to rise on Wednesday, ahead of inflation data for the first half of November on Thursday. Mexican inflation is expected to rise slightly, but core inflation will decline.
In addition, the Mexican Central Bank (Banxico) will publish the minutes of its latest meeting, in which while deciding to keep interest rates unchanged, it will also change the wording from “for a longer period of time” to “for a period of time.”
Investors are expected to focus on U.S. data on Wednesday, including weekly jobless claims and a Michigan consumer sentiment survey. Economic events in Mexico remain light, with traders looking for economic data that could influence central bank futures trading.
