The Mexican Peso (MXN) rallied sharply against the US Dollar (USD) on Monday, falling below the 18.00 psychological figure and reaching a level last seen on June 25. This surge in the Peso indicates that buyers remain committed to the 'carry trade,' which supports the Mexican currency. Traders are closely watching Mexico's economic docket, with a focus on the upcoming release of June's Consumer Price Index (CPI) report on July 9. Other data, such as Consumer Confidence and Industrial Production, will also be released and are expected to indicate a slowdown in the economy, according to analysts. The Bank of Mexico (Banxico) will reveal the latest meeting monetary policy minutes on Thursday, which are anticipated to show that the central bank will maintain a patient approach to cutting borrowing costs. Banxico's survey of economists suggests that the Gross Domestic Product (GDP) will end the year at 2%, slightly lower than the previous projection of 2.1%. They also expect Banxico to cut interest rates from 11.00% to 10.25%, up from the previous projection of 10.00% in May. The Mexican CPI is expected to rise from 4.69% YoY to 4.84% in June, while core CPI is estimated to dip from 4.21% to 4.15% annually. In the US, the CPI is forecasted to drop from 3.3% to 3.1% in the 12 months to June, while underlying inflation is projected to remain firm at 3.4% YoY. [ec1db767]
The Mexican Peso (MXN) remained relatively unchanged against the US Dollar (USD) on Friday, trading within the range of 17.99 to 18.19. The currency initially surged following mixed US jobs data, which raised speculation of a potential interest rate cut by the Federal Reserve in September. However, the USD/MXN pair later trimmed its losses and settled at 18.08, posting minimal gains of 0.02%. The Greenback also staged a slight recovery against the Mexican currency. Wall Street experienced mixed trading during this period. The Mexican economic calendar was empty, with traders focusing on upcoming releases such as the Consumer Price Index (CPI) for May, Consumer Confidence, and the Bank of Mexico's last monetary policy meeting minutes. Economists surveyed by Banxico estimate that Mexico's Gross Domestic Product (GDP) will end the year at 2%, slightly lower than the previous projection of 2.1%. They also expect the Bank of Mexico to cut interest rates from 11.00% to 10.25%, up from the previous projection of 10.00% in May. Some analysts in Mexico predict a slowdown in the economy but believe it will avoid a recession, according to the National Statistics Agency (INEGI) Coincident Indicator. However, they express concerns about the impact of President Andres Manuel Lopez Obrador's (AMLO) reforms, particularly the judiciary reform, on the country's creditworthiness. In the US, the Nonfarm Payrolls report showed an increase of 206,000 jobs, surpassing the estimated 190,000. However, the figures for April and May were revised downward, indicating lower job growth than previously reported. [063a0c72]
