Daily digest market movers: Mexican Peso strengthens after judicial reform approval in Senate

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  • Mexico’s Industrial Production in July dipped from 0.4% to 0.2% MoM. On an annual basis, production increased by 2.1%, crushing projections for a 1.1% jump and improving from a -0.7% contraction.
  • Mexico’s inflation in August dipped below 5% on headline figures on an annual basis, while core inflation stood firm near 4% YoY.
  • September’s Citibanamex Survey showed that Banxico is expected to lower rates to 10.25% in 2024 and to 8.25% in 2025. The USD/MXN exchange rate is forecast to end 2024 at 19.50 and 2025 at 19.85.
  • The US Bureau of Labor Statistics’ CPI data revealed that August’s headline inflation dipped from 2.9% to 2.6% YoY as expected.
  • Still, US core CPI, which excludes volatile items and is sought as a realistic inflation gauge, stalled at 3.2% YoY. In monthly figures, core CPI increased from 0.2% to 0.3%, while headline CPI stood at 0.2% MoM.
  • Data from the Chicago Board of Trade suggests the Fed will cut at least 98 basis points this year, up from 108 a day ago, according to the fed funds rate futures contract for December 2024.

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