Mexican Peso Jumped against USD on Interest Rate Differential Expectations, but Weekly Trend Remains Negative
January 29, 2024
Following positive trade balance data from Mexico and softer inflation data in the United States, the Mexican Peso (MXN) had a strong performance against the U.S. Dollar (USD) for the third consecutive day on Friday. The move has been backed by the increased likelihood of a rate cut by the U.S. Federal Reserve and put additional pressure on the greenback, as the interest rate differential is expected to favor the Latin American currency. The USD/MXN pair is currently trading at 17.16, down 0.23% for the day, but finished with a 0.53% increase.
Mexico's economy continues to demonstrate its resilience and potential, as evidenced by the recent data released by the National Statistics Agency (INEGI). In December, the country recorded a surplus, surpassing expectations and indicating a strong trade balance. The surplus reached an impressive $4.242 billion, exceeding both previous readings and forecasts, which had projected a surplus of $1.4 billion. This positive economic performance, coupled with robust labor market data, highlights the strength of Mexico's economy and the promising prospects of the U.S. southern neighbor.
Popular posts
Global Grain Price Recoveries Appears Excessively Bullish vis-à-vis Inventories and Weather Factors
April 24, 2024
Elon Musk's Tesla has Added a Dogcoin (DOGE) Payment Form to its Website. The Meme Coin Soars.
May 6, 2024
JPMorgan's Q1 Revenue Up by 9% to $41.93 Billion, but Guidance Disappointed
April 12, 2024