Mexican Peso climbs following strong US data
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Mexican Peso remains soft as US Retail Sales, Industrial Production beat estimates. Mexico’s Q2 Aggregate Demand and Private Spending data will be released Wednesday, while the Fed’s rate decision looms. US Dollar Index climbs 0.20% to 100.92, as traders maintain 61% odds for a 50 bps Fed rate cut. The Mexican Peso erased some of its losses against the US Dollar, gains some 0.30% after US Retail Sales data was better than expected. Despite that, expectations that the Federal Reserve (Fed) will cut rates by 50 basis points (bps) remained unchanged as the Fed begins its two-day meeting. The USD/MXN trades at 19.18 after hitting a daily high of 19.40. The US Commerce Department revealed that August Retail Sales fared better than the consensus. The data revealed that consumers remain resilient even though hiring and wage growth show signs of moderation. Other data showed that Industrial Production in August rose after posting a contraction in July. Following the data, the Greenback extended its gains, as seen by the USD/MXN pair. According to the US Dollar Index (DXY), it climbed some 0.20% to 100.92, even though odds for a 50 bps rate cut by the Fed remained at 61%, while the chances for a quarter of a percentage point are 39%. In the meantime, the Atlanta Fed GDP Now Index, which calculates estimates for Q3 Gross Domestic Product (GDP) figures, rose from 2.5% to 3%. On Wednesday, Mexico’s economic docket will feature Aggregate Demand for Q2 alongside Private Spending figures. Across the border, the US economic schedule will feature housing data ahead of the Federal Open Market Committee (FOMC) monetary policy decision. After that, Fed Chairman Jerome Powell will cross the wires. Daily digest market movers: Mexican Peso advances despite solid US data USD/MXN would continue to be driven by market mood…
Filed under: News - @ September 17, 2024 6:19 pm