MEXICAN PESO SOARS AGAINST US DOLLAR AS US INFLATION COOLS
- Mexican Peso advances in aftermath of US inflation report, US yields declining becomes headwind for Greenback.
- Banxico Governor's optimistic outlook on inflation trajectory bolsters confidence, targets 3% by 2025.
- Market shrugs off US PPI data, reducing speculation on immediate Federal Reserve rate cuts.
The Mexican Peso rallies against the US Dollar on Wednesday as traders assess the latest inflation report from the United States (US). The drop in US Treasury bond yields acts like a headwind for the exotic pair. Alongside an improvement in market mood, this is a headwind for the USD/MXN pair, which trades below the 17.20 figure, aiming to regain the 50-day Simple Moving Average (SMA).
Mexico’s economic calendar is empty throughout the week with the exception of the Bank of Mexico (Banxico) Governor Victoria Rodriguez Ceja's interview earlier on Monday. She said inflation is expected to resume its downtrend and added that inflation would hit Banxico’s 3% target by 2025.
In the US the release of the Producer Price Index (PPI) was ignored by market participants, which had already dialed back odds for Fed rate cuts
- Mexican Peso advances in aftermath of US inflation report, US yields declining becomes headwind for Greenback.
- Banxico Governor's optimistic outlook on inflation trajectory bolsters confidence, targets 3% by 2025.
- Market shrugs off US PPI data, reducing speculation on immediate Federal Reserve rate cuts.
The Mexican Peso rallies against the US Dollar on Wednesday as traders assess the latest inflation report from the United States (US). The drop in US Treasury bond yields acts like a headwind for the exotic pair. Alongside an improvement in market mood, this is a headwind for the USD/MXN pair, which trades below the 17.20 figure, aiming to regain the 50-day Simple Moving Average (SMA).
Mexico’s economic calendar is empty throughout the week with the exception of the Bank of Mexico (Banxico) Governor Victoria Rodriguez Ceja's interview earlier on Monday. She said inflation is expected to resume its downtrend and added that inflation would hit Banxico’s 3% target by 2025.
In the US the release of the Producer Price Index (PPI) was ignored by market participants, which had already dialed back odds for Fed rate cuts
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