Daily digest market movers: Mexican Peso depreciates following strong Durable Goods Orders
- Mexico’s National Statistics Agency (INEGI) revealed that mid-month CPI rose by 4.63% YoY, above March’s reading and estimate of 4.48%. Monthly, inflation increased 0.09%, missing forecasts of 0.03%.
- The core CPI edged lower compared to last month's figures. It rose by 4.39% YoY as expected, down from 4.69%, a 0.3% decrease. MoM data showed that core prices rose 0.16%, aligned with estimates.
- Citibanamex Survey showed that most analysts expect Banxico to hold rates unchanged at the May meeting. The median foresees a rate cut in June, while they estimate the main reference rate to end at 10.00%, up from 9.63% previously.
- Banxico 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 economy is faring well as Economic Activity expanded in February compared to January’s data. Figures increased by 1.4% MoM and 4.4% YoY in the second month of the year, up from January’s 0.9% and 1.9% expansion, respectively.
- US Durable Goods Orders in March expanded by 2.6% MoM, up from 0.7%, and exceeded forecasts of 2.5%. Excluding Transport, they increased 0.2% MoM, higher than February’s 0.1% but missed projections of 0.3%.
- Data from the Chicago Board of Trade (CBOT) suggests that traders expect the Fed funds rate to finish 2024 at 4.98%, up from 4.965% on Tuesday.
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