The USD/MXN has witnessed a marginal decline to near 18.10 in the Asian session after a recovery move. The asset has defended the psychological support of 18.00 amid a recovery move by the US Dollar Index (DXY). The USD Index is juggling near the previous day's high around 102.77. The mighty USD is gathering strength to deliver a break above the same in hopes that the Federal Reserve (Fed) will hike rates one more time this year.
S&P500 futures have trimmed losses shown in the Asian session, portraying further improvement in the risk appetite of the market participants. Receding fears of further casualty in the US banking system have weighed on demand for US government bonds. Eventually, the 10-year US Treasury yields jumped to 3.58%.
Going forward, the release of the United States core Personal Consumption Expenditure (PCE) Price Index data will remain in the spotlight, which is scheduled for Friday. As per the consensus, households’ spending increased by 0.4% in February lower than the prior escalation of 0.6%. The annual core PCE price index is expected to remain steady at 4.7%.
The National Retail Federation (NRF) said on Wednesday that fears of a recession and tremors in the banking industry cast a shadow over a recovery in consumer spending, as reported by Reuters. The NRF is expecting a growth in retail demand in the 4-6% range, lower than expansion by 7% recorded in 2022. Therefore, chances of a better-than-anticipated core PCE are less likely.
On the Mexican Peso front, investors are awaiting the interest rate decision by the Bank of Mexico (Banxico). As per the consensus, Banxico will hike interest rates further by 25 basis points (bps) to 11.25%.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.