- Mexican bizo is strengthened by more than 0.6 % with US tariff measures that are targeted and not a base.
- It cools in inflation in Mexico and shrinks the economy, which enhances the speculation of reducing the rate of 50 -bit pantico per second.
- The focus turns into Pancico’s decision, Mexico’s trade data and printing basic inflation in the United States.
The Mexican Biso (MXN) is a recovery against the US dollar (USD), and is estimated at more than 0.64 % amid a mutual tariff imposed by the United States (the United States). The Mexico’s schedule has been hinted in the economy that was contracted as the inflation process continued to develop, and revealed data from the NACIONAL De ESTADISICA GEOGRAFIA E Informatica (IGI). At the time of this report, the dollar is traded in 20.09.
During the weekend, Bloomberg revealed that the mutual tariff in April will target specific countries rather than applying duties widely to all imports. Investors, who feel comfortable with the news, prompted the stocks up.
In Mexico, Consumer Prices (CPI) for the first half of March compared to estimates on a monthly and annual basis. With the exception of food and energy, stopping the so -called CPI within the goal of the Banco de Mexico (banxico) of 3 % plus or minus 1 % on inflation.
Other data revealed that the Mexican economy was shrinking in January, which revealed INEGI. Given the development of the inflation and the weak economy, Pancico is expected to reduce the rates on Thursday, as most analysts are looking to reduce the rate of 50 basis points (BPS).
By border, the S& P Global Phish PMis revealed to the United States, with the different data that mixes, with manufacturing activity, against services, which improved compared to the February numbers.
This week, the economic list in Mexico will display trade balance numbers and interest rate decision in Pancico. In the United States, traders were watching the Federal Reserve’s favorite inflation scale, a basic personal consumption price index (PCE).
Digest Market Mark: Mexican Bzo climbs while the data supplies Pancico Pancico
- The Citi Mexico Residentals poll showed that most analysts expect that interest rates will end by 8 % in 2025, a decrease from 8.25 % in the previous version. USD/MXN is expected to end in 20.98, a decrease from 21.00 in the last survey.
- The inflation expectations remained in a 3 % high range, while the gross domestic product is expected to expand 0.6 %, a decrease from 0.8 % in the last survey.
- Inegi revealed that inflation in mid -March increased by 0.14 % of my mother, decreasing from February estimates 0.15 % and 0.22 %. On an annual basis, YOY increased by 3.67 %, a decrease from 3.74 % and under 3.75 % forecasts.
- The basic inflation for the same period reached 0.24 % of the illiterate, as expected, a decrease from 0.27 %. In the twelve months to March, it increased by 3.56 %, a decrease from 3.63 % and less than 3.57 % expectations.
- Mexico’s economic activity in January decreased by 0.1 % year on January, with an increase of December dance 0.4 %. The index decreased by 0.2 % per month, although it improved 1.0 %.
- The S& P Global revealed that the manufacturing activity in the United States has deteriorated sharply, as shown by the S&P Project Manager Index in March, which decreased from 52.7 to 49.8, below estimates of the expansion of 51.7.
- On the contrary, the S&P Service Manager Service Index was expanded from 51.0 to 54.3 for the same period, and estimates are broken to take off 50.8.
- Traders have priced the FBI to reduce policy by 64.5 basis points (BPS) throughout the year, and data from the Chicago Trade Council revealed.
Technical expectations USD/MXN: Mexican Peso rises with a USD/MXN decrease to less than 20.15
USD/MXN is still indisputable, but so far, at the time of writing this report, it has a decline as merchants await Pancico’s decision. Although the price reduction will be up to Greenback, the sellers remain responsible, as they look at the 200 -day moving medium test (SMA) at 19.69.
To reach this level, they first need to scan the psychological number 20.00. On the other hand, if the USD/MXN buyers pay after the meeting of SMAS 100 and 50 days near 20.35/39, then the next resistance will be a 20.50 mark. Once it exceeds, the move is about 20.99 on the cards.
Common questions between Mexican Peso
The Mexican Bezo (MXN) is the most circulating currency among its peers in Latin America. Its value is widely determined by the performance of the Mexican economy, the country’s central bank policy, the amount of foreign investment in the country and even the levels of transfers sent by Mexicans who live abroad, especially in the United States. Geopolitical trends can also move MXN: for example, the proximity process – or the decision of some companies to transfer manufacturing capabilities and supply supply chains near their countries of origin – is a motivation for the Mexican currency as the country is a main manufacturing center in the American continent. Another MXN catalyst is oil prices because Mexico is a major source of commodity.
The main goal of the central bank in Mexico, also known as Pancico, is to maintain inflation at low and stable levels (in or near its 3 % target, the center point in the range of tolerance between 2 % and 4 %). To this end, the bank determines an appropriate level of interest rates. When inflation is very high, BancicPico will try to tame it by raising interest rates, making it more expensive for families and companies to borrow money, thus cooling demand and macroeconomic economy. The highest interest rates are generally positive for Mexican Peso (MXN) because it leads to higher returns, making the country a more attractive place for investors. On the contrary, low interest rates tend to weaken MXN.
The total economy data is a key to assessing the state of the economy and can have an impact on the Mexican PESO (MXN) evaluation. The strong Mexican economy, based on high economic growth, is a decrease in unemployment and high confidence, useful for MXN. It not only attracts more foreign investments, but may also encourage the Bank of Mexico to increase interest rates, especially if this force corresponds to high inflation. However, if economic data is weak, MXN is likely to decrease.
As a currency of the emerging market, the Mexican Biso (MXN) tends to strive during risk periods, or when investors see the wider market risk low and thus yearn to communicate with investments that bear greater risks. On the contrary, MXN tends to be weak in times of turmoil in the market or economic uncertainty where investors tend to sell high -risk assets and flee to the most resigned safe havens.
