Mexican Peso falls against strengthening US Dollar, driven by unexpectedly robust US Retail Sales for March.
Mexico’s absence of significant data leaves USD/MXN pair more responsive to US economic data, risk appetite.
Forecasts for US economic growth look promising, Atlanta GDP Now predicting 2.4% growth rate in Q1 2024.
The Mexican Peso (MXN) depreciates against the US Dollar on Monday, courtesy of strong economic data from the United States (US) and higher US Treasury yields. Retail Sales in March were solid, keeping the Greenback bid and poised to test the highs of November 2023, according to the US Dollar Index (DXY). At the time of writing, the USD/MXN trades at 16.68, a gain of 0.23%.
With Mexico’s economic calendar relatively light, the focus for USD/MXN traders shifts to US Dollar dynamics and overall market sentiment. The next significant data release for Mexico, the Retail Sales data, is scheduled for April 19, 2024.
March’s Retail Sales in the US smashed estimates, an indication that Americans continued to spend despite higher interest rates set by the US Federal Reserve (Fed). It should be noted that sales in the control group – used to calculate the Gross Domestic Product (GDP) – skyrocketed sharply, which could be a prelude to strong growth in the first quarter of 2024.
Atlanta GDP Now estimates the US economy will grow 2.4% in Q1 2024, according to its latest update on April 10, 2024. The model will be updated later on Monday.
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