The Mexican economy grew surprisingly strongly in the third quarter, according to the first estimate. Instead of 0.6%, according to the Bloomberg median, it grew by almost 1% quarter-on-quarter, the highest rate in a year, Commerzbank’s FX analyst Michael Pfister note.
Risk of Trump becoming president weighs on peso
“This was probably mainly due to a surprisingly strong increase in agricultural products, which seem to have recovered from the natural disasters in the first half of the year. However, one should not hope that this means the end of Mexico's period of weakness. It is more likely that this was an outlier and that growth in the coming quarter will be more in line with the recent trend.”
“Despite the surprisingly good figures, the Mexican peso did not really benefit from them. In fact, USD/MXN hit a two-year high shortly after the data was released. For now, the peso is focused on other things: the more likely it becomes that Donald Trump will become the new US president, the more the peso will come under pressure.”
“This is because significant tariffs against Mexico become much more likely. So it should come as no surprise that the exchange rate is unlikely to react to Mexican news in the coming days.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD keeps its daily gains below 1.0900 post-US PCE
EUR/USD continues to trade modestly higher on the day but remains below 1.0900 in the American session on Thursday. The risk-averse market atmosphere and PCE inflation data for September support the USD, limiting the pair's upside.
USD/JPY trims losses and approaches 153.00
Following an earlier decline below 152.00, USD/JPY now manages to regain some composure and advance to the vicinity of the 153.00 barrier. The initial strong bullish move in the Japanese Yen came after BoJ's Ueda left the door open to a potential rate hike in December at the bank's meeting early onThursday.
Gold extends daily slide to $2,750 area
Gold extends its correction from the record-high it set at $2,790 and trades near $2,750. The benchmark 10-year US Treasury bond yield holds in positive territory above 4.3% after US inflation data, causing XAU/USD to stay on the back foot.
Eurozone inflation up to 2% in October as unemployment hits new record low
The Eurozone’s inflation rate increased more than expected, with core inflation stable at 2.7%. The direction of incoming data in the region is not quite clear, which provides the ECB with confusing signals for the path of rate cuts.
Bank of Japan holds rates steady amid signs of modest GDP growth
Monthly industrial production results have been mixed but generally indicate a modest recovery in third-quarter GDP. Clear guidance from the Bank of Japan remains elusive, with each upcoming meeting being pivotal.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.