The post USD/MXN appreciates to near 18.00 as US Dollar gains ground due to a risk-off mood appeared on BitcoinEthereumNews.com.

USD/MXN gains ground due to risk-off sentiment despite dovish sentiment surrounding the Fed. Vice President Kamala Harris had secured endorsements for the leading candidate for the presidential nomination. Traders await the release of the first half-month Inflation data for July on Wednesday. USD/MXN edges higher to near 18.00 during the European session on Tuesday. This upside could be attributed to the increased risk aversion, underpinning the US Dollar (USD). The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six other major currencies, trades around 104.30 after recovering its daily losses during the early European hours on Tuesday. However, the US Dollar may limit its upside as expectations rise for a Federal Reserve (Fed) rate cut in September. Last week, Fed Chair Jerome Powell noted that the three US inflation readings this year “add somewhat to confidence” that inflation is on track to meet the Fed’s target sustainably, implying that interest rate cuts might be approaching. In US politics, Democrats rallied behind Vice President Kamala Harris as the leading candidate for the presidential nomination. NBC News projected that Harris had secured endorsements from a majority of the Democratic party’s pledged convention delegates. The threshold for securing the nomination is 1,976 delegates, and NBC estimates that Harris has received the support of 1,992 delegates, either through spoken or written endorsements. Traders will likely observe the data releases of the Global Purchasing Managers Index (PMI) and Gross Domestic Product (GDP) later this week. These figures may offer fresh insights into the economic conditions of the United States (US). On the Swiss front, the first half-month Inflation and Core Inflation data for July are scheduled to be released on Wednesday. On Monday, Mexico’s economic activity expanded by 1.6% year-over-year in May, slowing from the nearly two-year-high increase of 5.4%…

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Filed under: News - @ July 23, 2024 8:26 am