alexa certify
0

Mexico CPI Eases, Peso Rises | Finance Brokerage

Yesterday, Mexican peso traders received new consumer price index data that showed CPI eased for the fifth month.

For figures, consumer prices gained 3.00% in September year-on-year and 0.26% month-on-month. This also means headline annual rate has fallen to its lowest since September 2016.

The Bank of Mexico expected this, with their target being at 3%, give or take 1%. Meanwhile, analysts had expected inflation to ease back to 3.00%, too, from the 3.16% it recorded in the month before.

Because of this, the markets and analysts are expecting the Banxico to continue their easing cycle. The cycle started in August.

Last month, the bank slashed its main lending rate by 25 basis points. That was the second time in a row it cut rates, pushing it down to 7.75%.

The global economy has been suffering from heavy uncertainty and trade war pressures. As a result, the members of the bank’s board are seeking to ease borrowing fees for businesses.

Mexican Peso, Other Currencies

The Mexican peso jumped against the dollar after the news. Peso traders will be focusing on the industrial data output today after the CPI data yesterday.

Elsewhere, the US dollar was broadly weaker against many currencies on Thursday. Reports about the trade talks between the two countries have been contradictory and speculative.

Some reports suggested that both sides would settle for a short-term to help their respective economies. Both the top two economies have suffered from the trade war conflicts.

The dollar index lost 0.3% at 98.547. Against both the onshore and offshore yuan, the buck was also 0.3% weaker.

The euro rose above the 1.1000 level for the first time in the week. It gained 0.4% at $1.1041.

At the same time, the Turkish lira managed a brief recovery after it rose to 0.2%. It then pared gains to trade at 5.8686. It reached four-month low against the buck earlier this week.

  • Support
  • Platform
  • Spread
  • Trading Instrument
Comments Rating 0 (0 reviews)

Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.



You might also like

Leave a Reply

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spread
    Sending
  • Trading Instrument
    Sending

Financebrokerage