• Mexican Peso edges up 0.50% against the US Dollar as traders await the Federal Reserve's policy announcement.
• Mexico's Q1 2024 GDP growth slows to 1.6% year-over-year, falling short of expectations and the previous quarter's growth rate.
• Mixed US PMI data contrasts with stronger-than-expected ADP employment figures.

The Mexican Peso recovered some ground against the US Dollar on Wednesday as traders braced for a busy economic docket in the United States (US). The highlight of the day would be the Federal Reserve's monetary policy decision and Fed Chair Jerome Powell's press conference. The USD/MXN trades with losses of around 0.50% on the day, at 17.03.

Mexico’s economy is slowing, the Instituto Nacional de Estadistica Geografia e Informatica (INEGI) revealed on Tuesday. The Gross Domestic Product (GDP) for Q1 2024 grew by 1.6% YoY, missing estimates of 2.1% and trailing 2023’s last quarter at 2.5%. On a quarterly basis, the growth rate showed an improvement from 0.1% to 0.2%, exceeding forecasts for no growth.

Across the border, US Purchasing Managers Index (PMI) figures from S&P Global and the Institute for Supply Management (ISM) were mixed. ADP data exceeded estimates, and job openings showed the labor market is cooling.