EMERGING MARKETS-Mexico’s peso falls on growth worries, stronger dollar

Yahoo Finance, 04/25/2023

The peso eased 0.4% against the greenback by 1450 GMT after data showed Mexico’s economy grew 0.1% in February from January and expanded 3.8% from February of 2022, missing analyst estimates. “Their manufacturing is now under stress because of the U.S.’s weakening industrial sector. We also believe that the tight financial conditions and relatively high inflation will put a lid on the services economy,” said Andres Abadia, chief Latam economist at Pantheon Macroeconomics. “Overall, the growth momentum will start to ease over the next few months but it won’t collapse, it is just a normal slowdown.”

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Inflación no cede; registró tasa anual de 7.88% en primera quincena de junio

Fuente: Milenio

23/06/2022

En la primera quincena de junio de 2022, el Índice Nacional de Precios al Consumidor (INPC) creció 0.49 por ciento respecto a la quincena anterior; con este resultado, la inflación general anual se ubicó en 7.88 por ciento, el nivel más alto desde la primera quincena de enero de 2001, de acuerdo con la información publicada por el Instituto Nacional de Estadística y Geografía (Inegi).

Los productos y servicios que registraron aumento de precios y que tuvieron mayor incidencia en la inflación de la primera quincena de junio de 2022 fueron: papa y otros tubérculos: pollo, electricidad, refrescos envasados, naranja, servicios en loncherías, fondas, torterías y taquerías, restaurantes y similares, vivienda propia, transporte aéreo y pan dulce. No obstante, lo anterior estuvo parcialmente contrarrestado por precios más bajos en el gas doméstico LP, limón, chile serrano, cebolla, uva, chile poblano, tomate verde, computadoras, huevo y en el limón.

LEER MÁS

USD/MXN – US Dollar Breakdown vs Mexican Peso, Watch 2019 Low

January 7, 2020

Source: DailyFX
By: Paul Robinson

USD/MXN HIGHLIGHTS:

• USD/MXN big-picture triangle broke to end 2019
• A drop through 18.7433 need to give conviction

To end 2019, USD/MXN broke out of the three-year-long triangle it had been building as a result of declining volatility. The break so far has held minimal velocity which could change quickly if last year’s low at 18.7433 is broken. The lack of momentum could also mean we are in for a ‘fake-break’.

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Mexico peso headed for choppy waters on back of trade uncertainty

10/24/19 – Reuters

By Abraham Gonzalez

Mexico’s peso is headed for choppy waters in what remains of 2019 as the ongoing U.S.-China trade war and the uncertain fate of the new North American trade deal could cause the currency to fluctuate between 18.80 and 21 per dollar, analysts say.

The peso’s immediate future ultimately depends on whether the world’s two largest economies can resolve their trade dispute and if U.S. lawmakers ratify the new U.S-Mexico-Canada (USMCA) trade agreement before it gets bogged down in the U.S. electoral politics.

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Trump election rhetoric could send Mexican peso down almost 9% to 21.30 per dollar -Banorte

 

10/09/19 – Reuters

By Noe Torres

The Mexican peso could fall almost 9% to 21.30 per dollar next year if U.S. President Donald Trump again threatens the country during his re-election campaign, Mexican financial group Banorte said on Tuesday.

Trump has repeatedly sent the Mexican currency and stock market tumbling after attacking Mexico over immigration and trade, mostly on Twitter, threatening to impose tariffs on Mexican goods or close the countries’ shared border.

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Mexico’s peso seen remaining attractive even with more rate cuts

09/03/19 – Reuters

By Abraham Gonzalez

As central banks across the globe cut interest rates, Mexico’s policymakers still have room to lower borrowing costs by as much as 100 basis points before the peso becomes less attractive than other currencies, fund managers and financial analysts say.

The spread between the key interest rate in the United States (2.0%-2.25%) and that of Mexico (8.0%) stands at 600 basis points, the third highest in the world after Argentina and Turkey and its highest level in a decade.

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Mexico Posts Largest Current Account Surplus on Record

08/23/2019- Reuters

By Anthony Esposito

Mexico posted a second quarter current account surplus of $5.143 billion, the largest surplus since records began in 1980 and the first since the second quarter of 2010, central bank data showed on Friday.

The second quarter current account surplus was equivalent to 1.6% percent of gross domestic product (GDP).

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Cooler Mexican Inflation Opens Door to More Possible Rate Cuts

08/22/2019- Reuters

By Dave Graham

Photo by Negative Space on Pexels.com

Mexican consumer price inflation eased more than expected during the first half of August, data from the national statistics agency showed on Thursday, which could create room for the central bank to lower borrowing costs in the coming months.

In the year through early August, prices rose by 3.29%, below the forecast of a Reuters poll of economists for a reading of 3.56%. In July, annual inflation slowed to 3.78%.

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Mexico peso faces difficult times as global trade anxiety sets in: Reuters poll

8/7/19 – Reuters

By Gabriel Burin

Mexico’s peso is falling victim to increasing global trade tensions and will likely struggle in the near future, only a few months after the currency was spared from the impact of direct U.S. tariffs, a Reuters poll showed.

The peso MXN= is expected to trade at 19.66 per dollar in one year, 0.4% weaker than July’s survey and 0.2% softer than its intraday value on Wednesday, according to the median forecast of 17 analysts polled Aug. 2-6.

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Mexico’s stimulus package to have ‘immediate impact’: finance minister

7/29/19 – Reuters

By Anthony Esposito

A $25 billion stimulus package unveiled by Mexico on Monday should have an immediate impact, Finance Minister Arturo Herrera said, as Latin America’s second-largest economy teeters on the brink of a recession.

The package comes just days before Mexico’s national statistics agency publishes second-quarter growth figures and amid an discussion over whether the economy has slipped into recession.

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