USD/MXN MOVES LOWER TO NEAR 17.16 AHEAD OF MEXICO RETAIL SALES, US CONSUMER SENTIMENT
- USD/CAD moves sideways with a positive bias toward an upward direction.
- US Dollar rose as investors’ sentiment toward Fed rate cuts diminished.
- The upcoming US and Mexican elections could put further pressure on MXN.
USD/MXN trims its intraday gain and continues its losing streak for the third straight session, trading near 17.16 during the European trading hours on Friday. However, the US Dollar (USD) received upward support as market participants have trimmed their bets on speculation of early interest rate cuts by the Federal Reserve in March, which could be attributed to the robust key economic data from the United States (US).
Additionally, the geopolitical tension in the Middle East turned the investors’ sentiment into risk aversion, which caused the increased demand for the US Dollar (USD). Additionally, the higher US bond yields contribute support to underpinning the Greenback. The 2-year and 10-year yields on US bond coupons trade at 4.35% and 4.15%, respectively, by the press time.
US Federal Reserve Bank of Atlanta President Raphael Bostic delivered remarks on Thursday at an event hosted by the Atlanta Chamber of Commerce. Bostic mentioned that the Fed's base case is to contemplate rate cuts in the third quarter, while also leaving open the possibility for an earlier commencement of the rate cut cycle, depending on inflation figures. Furthermore, traders will closely watch the US preliminary Michigan Consumer Sentiment Index, anticipating an improvement in January.
On Mexico’s side, markets have a sentiment that the upcoming 2024 elections in both Mexico and the US could potentially put further pressure on the performance of the Mexican Peso. Throughout the week, Mexico's economic calendar did not feature notable events, and market participants are now looking forward to the release of November's Retail Sales data on Friday. Projections indicate a month-over-month and year-over-year decrease at 0.5% and 3.2%, respectively, falling short of the previous figures
- USD/CAD moves sideways with a positive bias toward an upward direction.
- US Dollar rose as investors’ sentiment toward Fed rate cuts diminished.
- The upcoming US and Mexican elections could put further pressure on MXN.
USD/MXN trims its intraday gain and continues its losing streak for the third straight session, trading near 17.16 during the European trading hours on Friday. However, the US Dollar (USD) received upward support as market participants have trimmed their bets on speculation of early interest rate cuts by the Federal Reserve in March, which could be attributed to the robust key economic data from the United States (US).
Additionally, the geopolitical tension in the Middle East turned the investors’ sentiment into risk aversion, which caused the increased demand for the US Dollar (USD). Additionally, the higher US bond yields contribute support to underpinning the Greenback. The 2-year and 10-year yields on US bond coupons trade at 4.35% and 4.15%, respectively, by the press time.
US Federal Reserve Bank of Atlanta President Raphael Bostic delivered remarks on Thursday at an event hosted by the Atlanta Chamber of Commerce. Bostic mentioned that the Fed's base case is to contemplate rate cuts in the third quarter, while also leaving open the possibility for an earlier commencement of the rate cut cycle, depending on inflation figures. Furthermore, traders will closely watch the US preliminary Michigan Consumer Sentiment Index, anticipating an improvement in January.
On Mexico’s side, markets have a sentiment that the upcoming 2024 elections in both Mexico and the US could potentially put further pressure on the performance of the Mexican Peso. Throughout the week, Mexico's economic calendar did not feature notable events, and market participants are now looking forward to the release of November's Retail Sales data on Friday. Projections indicate a month-over-month and year-over-year decrease at 0.5% and 3.2%, respectively, falling short of the previous figures
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.