- Mexico´s failure to resolve the steel and aluminum conflict with the US could weigh on the Mexican currency as US trade representative Katherine Tai warned Mexico that the US could reimpose tariffs on imports of the aforementioned commodities if the Mexican government doesn’t stop the increase in exports. US authorities question Mexico’s lack of transparency on imports of steel and aluminum from third countries.
- Mexico’s economic schedule will gather pace on Wednesday with the release of Retail Sales, Gross Domestic Product (GDP) and February’s Mid-Month inflation data.
- Mexico’s Retail Sales are expected to rise 0.2% MoM in December and 2.5% YoY.
- GDP is projected to have grown 0.1% in Q4 2023 and 2.4% YoY.
- Mid-month underlying inflation for February is foreseen cooling from 4.78% to 4.67 YoY, while headline inflation is projected to drop from 4.9% to 4.7%.
- On Wednesday, the US Federal Reserve (Fed) releases the latest Federal Open Market Committee (FOMC) Minutes alongside Fed officials crossing the wires.
- Traders will get further cues from US S&P Global PMIs, Initial Jobless Claims data and the Chicago Fed National Activity Index. The latter is usually a prelude to the Institute for Supply Management’s (ISM) Manufacturing PMI.
- US economic data related to price pressure should greatly influence Federal Reserve officials. Although opening the door to easing policy, Fed officials have expressed numerous times that they will not rush rate cuts.
- Fed’s Bostic said patience is required, and he foresees two rate cuts, which could begin in the summer if the data justifies it. Fed’s Daly said, “We will need to resist the temptation to act quickly when patience is needed and be prepared to respond agilely as the economy evolves.”
- Market players are expecting the first rate cut by the Federal Reserve at the June monetary policy meeting as they have trimmed odds for March and May.
Daily digest market movers: Mexican Peso trips down as traders digest Monday’s data
Mexico´s failure to resolve the steel and aluminum conflict with the US could weigh on the Mexican currency as US trade representative Katherine Tai warned Mexico that the US could reimpose tariffs on imports of the aforementioned commodities if the Mexican government doesn’t stop the increase in exports. US authorities question Mexico’s lack of transparency on imports of steel and aluminum from third countries.
Mexico’s economic schedule will gather pace on Wednesday with the release of Retail Sales, Gross Domestic Product (GDP) and February’s Mid-Month inflation data.
Mexico’s Retail Sales are expected to rise 0.2% MoM in December and 2.5% YoY.
GDP is projected to have grown 0.1% in Q4 2023 and 2.4% YoY.
Mid-month underlying inflation for February is foreseen cooling from 4.78% to 4.67 YoY, while headline inflation is projected to drop from 4.9% to 4.7%.
On Wednesday, the US Federal Reserve (Fed) releases the latest Federal Open Market Committee (FOMC) Minutes alongside Fed officials crossing the wires.
Traders will get further cues from US S&P Global PMIs, Initial Jobless Claims data and the Chicago Fed National Activity Index. The latter is usually a prelude to the Institute for Supply Management’s (ISM) Manufacturing PMI.
US economic data related to price pressure should greatly influence Federal Reserve officials. Although opening the door to easing policy, Fed officials have expressed numerous times that they will not rush rate cuts.
Fed’s Bostic said patience is required, and he foresees two rate cuts, which could begin in the summer if the data justifies it. Fed’s Daly said, “We will need to resist the temptation to act quickly when patience is needed and be prepared to respond agilely as the economy evolves.”
Market players are expecting the first rate cut by the Federal Reserve at the June monetary policy meeting as they have trimmed odds for March and May.
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