Daily digest market movers: Mexican Peso rescued by softer US S&P PMIs
- Banxico’s Governor Victoria Rodriguez Ceja said that service inflation is not slowing as expected. She added that the Peso‘s strength has helped to temper inflationary pressures and lower imported goods. She emphasized that Banxico would remain data-dependent.
- Mexico’s March inflation figures showed that the CPI was 4.48% and 4.69% for core YoY. On a monthly basis, the CPI was 0.27% and 0.33%, respectively.
- On Monday, the National Statistics Agency (INEGI) revealed that Economic Activity rose 1.4% MoM and 4.4% YoY in the second month of the year compared to January’s 0.9% and 1.9% increases, respectively.
- Last week, the International Monetary Fund (IMF) updated its economic growth projections for Mexico, reducing the 2024 growth forecast from 2.7% to 2.4% and the 2025 forecast from 1.5% to 1.4%.
- S&P Global revealed that the US Manufacturing PMI was 49.9, below the estimates of 52, while the Services index stood at 50.9, down from the 52 expected. Therefore, the Composite PMI was down from 52.1 to 50.9.
- Market participants had priced out an interest rate cut by the Fed in June and July, sparked by hawkish comments expressed by Fed officials last week.
- Data from the Chicago Board of Trade (CBOT) suggests that traders expect fed funds rate to finish 2024 at 4.965%, down from 4.985% on Monday.
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