Mexican Peso rises despite higher US Treasury yields, mixed data.
Atlanta Fed President Bostic’s hawkish outlook sponsored traders repricing for a less dovish Fed.
US jobs data was strong, while Services PMI suggests business activity decelerates.
The Mexican Peso posts gains against the US Dollar on Wednesday as US Treasury yields climbed, sponsored by Atlanta Federal Reserve President Raphael Bostic's hawkish comments. Economic data from the United States (US) was mixed, while goodish Gross Fixed Investment figures in Mexico capped the emerging market currency’s fall. The USD/MXN trades at 16.54, down 0.06%.
The Greenback is trading mixed during the session, depreciating against most G8 currencies but clocking gains against emerging market ones. Atlanta Fed President Raphael Bostic highlighted the economy's strong momentum but emphasized the need for growth and inflation to slow. He anticipates a rate cut in the last quarter of 2024 and projects inflation to reach the Fed's 2% target by 2026.
Data-wise, the US economic docket features employment data and Services Purchasing Managers Index (PMI) by S&P and the Institute for Supply Management (ISM). Automatic Data Processing (ADP) revealed that private hiring increased above estimates and the previous month’s reading in March, portraying a tight labor market, which is positive for the Greenback. However, recently released data suggesting that business activity is cooling down, as portrayed by S&P Global and ISM Services PMI, capped US Dollar recovery.
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