US Dollar Dips Against Mexican Peso Amid Mixed Economic Signals
US Dollar Falls for Second Consecutive Day Against Mexican Peso
Investors observed a second consecutive day of decline for the US dollar against the Mexican peso, with the currency trading around 17.18. The dip was influenced by a mix of US economic data that left market participants weighing their options. Treasury bond yields experienced an uptick following an increase in US one-year inflation expectations to 4.5%, as reported by the University of Michigan (UoM). The five-year forecasts, however, remained stable at 3.2%. Conversely, US Durable Goods Orders took an unexpected hit, falling by -5.4%, with Jobless Claims also coming in lower than anticipated at 209,000.
Mexico’s Economic Indicators Show Signs of Moderation
The economic outlook for Mexico displayed signs of moderation, as Retail Sales growth slowed to 2.3% year-on-year in September. This occurred amidst the Bank of Mexico’s (Banxico) aggressive interest rate policy, currently standing at 11.25%. The tightening of monetary policy is geared towards controlling inflation but may also be impacting consumer spending.
Attention Shifts to Mexico’s Economic Indicators
With US markets closed for Thanksgiving, focus has shifted to Mexico’s economic indicators. Analysts are keeping a close eye on October’s growth estimates, expected to remain robust at 2.9%. Additionally, the upcoming November inflation figures from Mexico will be closely monitored.
Anticipation for US S&P Global Manufacturing and Services PMI Numbers
Investors are eagerly anticipating Friday’s release of the US S&P Global Manufacturing and Services PMI numbers. There is an expectation that these indices might reflect potential decreases, shedding light on broader economic trends and possibly influencing market dynamics further.
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