Mexican Peso set for weekly gains as weak US data offsets Banxico’s rate cut
The post Mexican Peso set for weekly gains as weak US data offsets Banxico’s rate cut appeared on BitcoinEthereumNews.com. Mexican Peso appreciates as USD/MXN dips to 19.47 after disappointing US sentiment data. Banxico cuts benchmark rate by 50 bps, but Peso holds firm as US data dents Greenback strength. U. of Michigan survey shows inflation expectations rising and consumer sentiment at multi-year low. Traders now price in 51 bps of Fed easing by year-end; eyes turn to next week’s Mexico GDP and US PMIs. The Mexican Peso (MXN) erases its previous losses against the US Dollar (USD) on Friday and Is set to finish the week with gains. A day ago, Banco de Mexico (Banxico) reduced the main reference rate, though it failed to weigh on the Mexican currency, which has gained some steam following weak US economic data. At the time of writing, the USD/MXN trades at 19.47, down 0.09%. Banxico reduces rates, eyeing additional easing; US Consumer Sentiment deteriorates On Thursday, Banxico unanimously decided to reduce interest rates by 50 basis points (bps) for the third straight meeting in 2025, and it has opened the door for additional cuts of the same magnitude. Although the Mexican institution reduced the rate differential to 400 bps with US Treasuries, a deterioration in US Consumer Sentiment drove the USD/MXN exchange rate lower. The University of Michigan (UoM) revealed that American consumers are growing increasingly pessimistic about the current state of the economy, as indicated by May’s poll. Additionally, inflation expectations had risen well above the Fed’s 2% target, which could pressure the US central bank, which has become cautious in assessing the impact of the Trump administration’s controversial trade policies on the economy. Other US economic data revealed earlier showed that Housing Starts increased while Building Permits fell. Meanwhile, the US Department of Commerce reported that Import Prices edged up in April, exceeding estimates. The increase in Import Prices, along…
The post Mexican Peso set for weekly gains as weak US data offsets Banxico’s rate cut appeared on BitcoinEthereumNews.com.
Mexican Peso appreciates as USD/MXN dips to 19.47 after disappointing US sentiment data. Banxico cuts benchmark rate by 50 bps, but Peso holds firm as US data dents Greenback strength. U. of Michigan survey shows inflation expectations rising and consumer sentiment at multi-year low. Traders now price in 51 bps of Fed easing by year-end; eyes turn to next week’s Mexico GDP and US PMIs. The Mexican Peso (MXN) erases its previous losses against the US Dollar (USD) on Friday and Is set to finish the week with gains. A day ago, Banco de Mexico (Banxico) reduced the main reference rate, though it failed to weigh on the Mexican currency, which has gained some steam following weak US economic data. At the time of writing, the USD/MXN trades at 19.47, down 0.09%. Banxico reduces rates, eyeing additional easing; US Consumer Sentiment deteriorates On Thursday, Banxico unanimously decided to reduce interest rates by 50 basis points (bps) for the third straight meeting in 2025, and it has opened the door for additional cuts of the same magnitude. Although the Mexican institution reduced the rate differential to 400 bps with US Treasuries, a deterioration in US Consumer Sentiment drove the USD/MXN exchange rate lower. The University of Michigan (UoM) revealed that American consumers are growing increasingly pessimistic about the current state of the economy, as indicated by May’s poll. Additionally, inflation expectations had risen well above the Fed’s 2% target, which could pressure the US central bank, which has become cautious in assessing the impact of the Trump administration’s controversial trade policies on the economy. Other US economic data revealed earlier showed that Housing Starts increased while Building Permits fell. Meanwhile, the US Department of Commerce reported that Import Prices edged up in April, exceeding estimates. The increase in Import Prices, along…
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