The post Mexican Peso turns negative as the US Dollar bounces up from lows appeared on BitcoinEthereumNews.com.

The Mexican peso failed again at 20.00 level before turning negative on the daily chart. MXN fails to draw support from lower US Treasury yields and weak US manufacturing figures. The USD/MXN needs an additional impulse to break the 20.00 level. The Mexican Peso (MXN) has given away the moderate gains seen at the week opening and is retreating again from the 20.00 level. The US Dollar (USD) has taken back lost ground following a soft week opening as US Treasury yields retreated from last week’s highs and kept trading higher, unfazed by the negative manufacturing data. The NY Empire State Manufacturing Index dropped to 0.2 in December from 31.2% in the previous month, beyond the 12 reading expected. In less than one hour, the US preliminary Purchasing Managers Index (PMI) data is expected to confirm that manufacturing activity softened in December, with the services sector expanding at a slower pace than in the previous month. These figures would be consistent with the view of a Federal Reserve (Fed) rate cut on Wednesday, although the market is likely to wait for some more insight into the central bank’s forward guidance before making investment decisions. In Mexico, macroeconomic data was disappointing last week. Consumer inflation dropped beyond expectations and consumer confidence and industrial output disappointed. The macroeconomic backdrop remains resilient, with unemployment at low levels, but concerns that higher tariffs by Trump’s administration next year will hurt growth and will likely pressure the Bank of Mexico (Banxico) to cut rates by 25 bps on Thursday. Daily digest market movers: US Dollar rally falters as the Fed decision approaches The US Dollar Index (DXY) has stalled near three-week highs and is trimming some gains on Monday as investors take profits awaiting the Fed’s monetary policy decision, due on Wednesday.  US Treasury yields have pulled back from last week’s highs, undermining…

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Filed under: News - @ December 16, 2024 4:19 pm