On Thursday, Banco de Mexico (Banxico) reduced interest rates by 25 bps as expected by analysts, leaving the main reference rate at 7.75%. The decision was not unanimous, as Deputy Governor Jonathan Heath, for the second consecutive meeting, voted to keep interest rates unchanged, with the rest of the board opting for an interest rate…
USD/MXN flats near 19.58 as soft Mexican manufacturing and Banxico’s dovish tilt weigh against strong US jobs data. Mexico’s dismal data suggests the economic slowdown might continue as PMI hits three-year low, business confidence deteriorates. Banxico is seen cutting rates in May, widening policy gap with Fed and pressuring Peso outlook. The Mexican Peso (MXN)…
Mexican Peso appreciates as USD/MXN slips to 19.56 on hopes for US tariff relief. Wall Street gains spark demand for riskier assets like the Mexican Peso. Trump hints at easing auto tariffs; potential trade deals with India or South Korea eyed. Traders await Mexico’s Q1 GDP and US Core PCE data for fresh direction. The…
Banxico board sees increased economic slack and downside inflation risks, reinforcing expectations for more rate cuts. Majority noted orderly MXN trading and improving liquidity conditions despite external volatility. USD/MXN could test 20.00 if support at 20.30 breaks; upside risk only resumes above 20.50. On Thursday, April 10, Banco de Mexico (Banxico) released its latest meeting…
Mexican Peso gains as China retaliates with 125% tariffs, sending the US Dollar Index below 100 for the first time since 2021. Banxico minutes show unanimous concern over decelerating growth; rate cut likely at next meeting. US data mixed: PPI cools but remains elevated; sentiment slumps and inflation expectations jump. The Mexican Peso ends the…
The Mexican Peso falls as traders brace for a 50-basis-point rate cut amid signs of cooling inflation and weak economic activity. Banxico expected to slash rates by 50 bps as economy shows signs of fatigue. Economic activity remains in contraction despite solid retail sales and marginal January improvement. The Mexican Peso (MXN) depreciates against the…
A Reuters poll revealed that on March 27, Banco de Mexico (Banxico) is expected to cut interest rates by 50 bps amid the evolution of the disinflation process and an ongoing economic slowdown. Economists expect rates to get as low as 8.25% in 2025 Of 25 economists, 23 expect the central bank to lower borrowing…
Mexican Peso advances as USD/MXN plunges below 19.90, down over 1%. The Peso shrugs off Mexico’s weak industrial output and declining consumer confidence fueling recession concerns. US consumer sentiment plunges amid rising inflation expectations, driven by upcoming Trump administration tariffs. The Mexican Peso (MXN) rallied against the US Dollar (USD) on Friday, ignoring softer-than-expected economic…
Mexico’s Q4 GDP contracts for the first time since 2021. Banxico slashes 2025 growth outlook to 0.6%, well below Finance Ministry projections. US data mixed: Manufacturing PMI improves but Services PMI falls into contraction. The Mexican Peso (MXN) lost some ground against the US Dollar (USD) on Friday as the Mexican economy decelerated in the…
Mexican Peso set for over 1% weekly gain as USD tumbles. The US Dollar Index falls to YTD lows as Fed rate-cut bets increase US Retail Sales drop fuels slowdown fears, boosting Fed easing expectations to 43.5 bps. Banxico minutes, Mexico GDP, and Retail Sales are in focus next week. The Mexican Peso (MXN) extended…