USD/MXN drops as revised US inflation data fuel expectations for Fed easing.
US inflation adjustments show success in price control, leading to a weakened Dollar outlook.
Banxico holds rates at 11.25% with changes in policy statements indicating a careful stance on future adjustments.
The Mexican Peso (MXN) advanced steadily in early trading on Friday against the US Dollar (USD) following the latest revision on inflation figures in the United States (US). The data confirms the Federal Reserve’s (Fed) attempt to curb elevated prices is working, opening the door to lower interest rates. Therefore, the Greenback (USD) is trading softer, and the USD/MXN exchanges hands at 17.10, down 0.25%.
Mexico’s economic docket during the last two days has been busy. Inflation is heading up, while the Bank of Mexico (Banxico) decided to hold rates at 11.25%, though it removed hawkish language from the monetary policy statement. Instead, they added, “In the next monetary policy meetings, it will assess, depending on available information, the possibility of adjusting the reference rate
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