USD/MXN has shown a recovery move to near 17.10 as the market mood is turning cautious.
Investors are expecting that interest rates by the Fed will peak sooner than the guidance provided.
The Mexican Peso is on the seventh sky as interest rates by the Banxico are at 11.25%.
The USD/MXN pair has rebounded to near 17.10 after printing a fresh seven-year low in the European session. The asset is expected to remain less volatile as US markets will be closed on Monday on account of Juneteenth.
S&P500 futures have extended their losses as the risk appetite of the market participants has trimmed due to the extended weekend in the US. The US Dollar Index (DXY) has witnessed some selling pressure after recovering to near 102.56 as investors are expecting that interest rates by the Federal Reserve (Fed) will peak sooner than the guidance provided.
Fed chair Jerome Powell, in his monetary policy statement last week, commented that two interest rate hikes are appropriate as labor market conditions are still tight and the core Consumer Price Index (CPI) is showing persistence.
The journey of bringing down inflation to desired levels is far from over, however, short-term consumer inflation expectations have softened sharply. Also, Consumer Sentiment Index has improved significantly after a sheer deceleration in the consumer and producer price index due to lower gasoline prices.
Meanwhile, the Mexican Peso is on the seventh sky as interest rates by the Bank of Mexico (Banxico) are at 11.25%. Going forward, investors will keep focusing on the Retail Sales data (April). As per the preliminary report, monthly economic data is seen contracting by 0.3% against a stagnant performance reported last month. Annualized data is expected to expand to 2.9% vs. the prior release of 2.5%.
면책 조항: 본 게시글에 표현된 견해는 전적으로 작성자의 견해이며 Followme의 공식 입장을 대변하지 않습니다. Followme는 제공된 정보의 정확성, 완전성 또는 신뢰성에 대해 책임을 지지 않으며, 서면으로 명시적으로 언급되지 않는 한 해당 내용을 기반으로 취해진 어떠한 조치에 대해서도 책임을 지지 않습니다.
더 오래된 의견은 없습니다. 소파를 가장 먼저 잡으십시오.