FXStreet (Córdoba) - USD/MXN continues to consolidate after making a correction from record high levels at 17.34 (Sep 24 highs) to 16.32 (Oct 15 low) ahead of the Federal Reserve and the Bank of Mexico meetings that will take place later during the week. The pair is moving sideways in the short term, without a clear direction. To the downside, the 16.35 zone is offering support and a break lower with a confirmation is likely to open the doors from a more significant correction. On the upside direction a close significantly above 16.65 could boost the US dollar, initially to 16.80 and if it continues, attention would turn to the 17.00 handle. No change from central banks expected “On Thursday, there is a rate decision in Mexico. We, in line with the unanimous consensus, expect the Overnight Rate to be kept on hold at 3.0%. With September CPI inflation at 2.5% Y/Y running comfortably below the 3% target, there is no reason for changing rates”, said analysts from TD Securities. On Wednesday the FOMC will announced its decision and like Banxico, no change in rates is expected. For more information, read our latest forex news.