The post Mexican Peso advances sharply as traders eye Banxico’s decision appeared on BitcoinEthereumNews.com.

Mexican Peso gains over 2%, trading at 19.26, ending a four-day decline against the Greenback. Mexico’s economic data shows slowdown in automobile production and exports; traders focus on Thursday’s inflation data and Banxico policy decision. Reuters poll: 12 of 22 economists expect Banxico to hold rates steady, while 10 anticipate a 25 bps cut. Rabobank predicts Banxico will cut rates by 25 bps, with 50 bps of easing expected by year-end. The Mexican Peso enjoys a healthy rally on Wednesday and snapped a four-day losing streak against the Greenback following Monday’s stock market massacre. Market players cheered words from Bank of Japan’s Deputy Governor Uchida, who said the BoJ would not raise rates if markets were unstable. This boosted the emerging market currency, which would be pressured as Thursday’s docket will be busy. The USD/MXN trades at 19.26 and plunges over 2%. Sentiment improved after Uchida’s words, as reflected by Wall Street’s rise between 0.65% and 1.62%. The US Dollar Index (DXY), which measures the buck’s performance against six currencies, edged higher by 0.26% to 103.19. Mexico’s economic docket featured Automobile Production and Exports figures on Tuesday, with data showing a slowdown in both readings. Traders shrugged off the data, yet are preparing for Thursday’s docket, which will feature July inflation data and the Bank of Mexico (Banxico) monetary policy decision. Regarding the latter, a Reuters poll showed that 12 of 22 economists expect the Bank of Mexico to hold rates unchanged, while 10 others expect a 25-basis-point (bps) rate cut. Analysts at Rabobank expect Banxico to lower rates by 25 bps on a 3-2 split vote and expect 50 bps of easing between now and year-end. In the US, investors continued to price in over 100 bps of cuts by the US Federal Reserve (Fed) via the Chicago Board…

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Filed under: News - @ August 8, 2024 3:24 am