- USD/MXN halts its losing streak ahead of US Inflation data on Tuesday.
- Mexican Industrial Production data is expected to show growth in January.
- US CPI (MoM) is anticipated a slight increase in February.
USD/MXN snaps its eight-day losing streak as risk-off sentiment dominates ahead of the scheduled release of US inflation data on Tuesday. The USD/MXN pair trades higher around 16.80 during the European session.
The market anticipates a slight increase in February's US inflation (MoM) figure. A robust US Consumer Price Index (CPI) data would likely reduce the chances of an immediate rate cut by the Federal Reserve (Fed).
Mexico's economic calendar includes Industrial Production data for January on Tuesday, with market expectations indicating a monthly increase of 0.4% and a yearly rise of 2.1%. Additionally, market participants are eagerly anticipating the upcoming policy meeting of the Bank of Mexico (Banxico) on March 21.
The 12-Month Inflation rate decreased from a seven-month high in January. However, Core Inflation rose higher than the previous increase. Headline Inflation increased less than expected and lower than the previous rise.
US Nonfarm Payrolls added more jobs in February compared to January's figure and market expectations. However, US Average Hourly Earnings (YoY) increased but remained below both the estimated and previous readings.
Additionally, Federal Reserve (Fed) Chair Jerome Powell suggested potential cuts in borrowing costs sometime this year, highlighting that such actions would depend on the inflation trajectory aligning with the Fed's 2% target. According to the CME FedWatch Tool, there has been a slight decline in the probability of a rate cut in June, currently standing at 68.9%.
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 regains 1.0500 and beyond as US Dollar wilts ahead of data
EUR/USD is extending the rebound above 1.0500 in the European session on Wednesday. Traders cash in on the US Dollar long positions ahead of a series if top-tier US data, lifting the pair. The USD/JPY sell-off also adds to the US Dollar downside.
GBP/USD holds gains near 1.2600, US PCE data eyed
GBP/USD extends the bullish momentum to trade near 1.2600 in European trading on Wednesday. The pair remains underpinned by a sustained US Dollar weakness and risk-off sentiment as traders turn cautious ahead of top-tier US data releases.
Gold price climbs above $2,650 on trade war concerns, sliding US bond yields and softer USD
Gold price sticks to modest intraday gains near a two-day high, above the $2,650 level, through the first half of the European session as geopolitical risks and US President-elect Donald Trump's tariff plans drive haven flows for the second straight day.
US core PCE inflation set to hold steady, raising doubts on further Federal Reserve rate cut
The United States Bureau of Economic Analysis (BEA) is set to release the Personal Consumption Expenditures (PCE) Price Index data for October on Wednesday at 13:30 GMT.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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.