- Mexican peso continues with weak unemployment among emerging countries before Banxico.
- USD / MXN rises for the second day, still unable to clearly assert itself above 20.50.
The Mexican peso is falling against the dollar on Thursday and remains far from the highs since March that it reached earlier this week. The USD / MXN had come to operate in the 20.00 zone and hours ago it reached 20.62, the highest level in six days.
The price of the cross is at 20.55, but still unable to clearly assert itself above 20.50. It maintains an underlying bearish but bullish trend in the very short term. Among emerging markets, the Mexican peso has been among the weakest in recent sessions.
The market on Thursday will keep an eye on US data, the mood of the markets and what happens on Wall Street. The decline in share prices is driving demand for risky assets, hurting the Mexican peso.
Banxico the last show?
The Banco de México will announce its monetary policy decision today. The expectation is divided between those who estimate that there will be no changes in the reference interest rates and those who expect a cut of 25 basis points that would leave it at 4%.
While the need for a more vigorous recovery, together with the fact that it is one of the highest among emerging countries, point to a drop in the rate. But, the recent rise in inflation put Banxico in trouble. In the last two months, the Mexican peso appreciated properly considering what is a favorable factor for the inflation outlook and an argument for those who want to lower the rate.
In another aspect, on Wednesday it was known that the rating agency Fitch ratified the investment grade in Mexico, by maintaining the BBB- note, with stable outlook. The reasons for this were the stable macro, stable external finances and the expectation of stabilization of the debt / GDP ratio.
Credits: Forex Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
