Daily digest market movers: Mexican Peso tumbles after US inflation report
- Mexico’s Consumer Price Index (CPI) was lower than estimated as the disinflation process continued. In the same tone, core CPI decelerated on a yearly and monthly basis, justifying the Bank of Mexico's (Banxico) decision to lower rates on March 21. However, not everything was good news for the central bank, as the yearly CPI exceeded estimates.
- Mexico’s CPI rose 0.29% MoM, according to the National Statistics Agency (INEGI). This was lower than the expected 0.36% increase and higher than the 0.09% rise noted in February. Core figures rose by 0.44%, which was lower than the 0.51% that economists had forecast and below the 0.49% increase in February.
- The US Consumer Price Index (CPI) increased 0.4% MoM and 3.5% YoY, exceeding estimates, with annual inflation also punching above the previous month’s number. The underlying CPI, which excludes volatile items like food and energy, was above projections but remained unchanged compared to February’s data at 0.4% MoM and 3.8% YOY.
- US Treasury bond yields skyrocketed, with the short end of the curve, namely the 2-year T-note, climbing 20 basis points.
- The US Dollar Index (DXY) is soaring more than 1%, standing at 105.27, at new year-to-date (YTD) highs.
- Traders are eyeing the release of the Minutes of the latest Fed meeting in March.
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