Mexican Peso stable after midweek volatility

The Mexican Peso holds the line in its major pairs as a lack of market moving data and geopolitical shocks keeps volatility to a minimum. 

On Thursday the US released a mixed bag of data that did not really change the outlook for the economy or interest rates, a key driver for FX. The same went for Europe and the UK. 

Regarding the US data, the results were as follows:

• Initial Jobless Claims came in at 222K in the week ending May 10, which was above the 220K expected but below the upwardly revised 232K of the previous week. 
   
• The number of Building Permits awarded – said to be a leading indicator for the economy – fell to 1.44M in April, which was below the 1.48M expected and 1.47M previous. 
   
• Housing Starts in April rose to 1.36M from 1.29M previously, but not as much as the 1.42M economists had expected. 
   
• The Philadelphia Fed Manufacturing Survey came in at 4.5 in May, below the 8 forecast and the 15.5 previously. 
   
• US Industrial Production flatlined in May, coming in at 0.0% when analysts had expected a 0.1% rise, the same as the previous month. 

Apart from the data, several US Federal Reserve (Fed) officials commented on Fed monetary policy, but their words were interpreted as neutral and had little impact. 

The President of the Richmond Fed Thomas Barkin said inflation is coming down, but that it will “take more time” to hit the Fed’s target. 

Cleveland Fed President Loretta Mester, meanwhile, welcomed the latest CPI data but said monetary policy is well-positioned.

Atlanta Fed President Raphael Bostic said he was pleased with the progress on inflation in April but that the Fed needed to “be patient and vigilant.”

In Europe, European Central Bank (ECB) executive board member Isabel Schnabel, meanwhile, said an interest rate cut in June may be appropriate but the “path beyond June is much more uncertain.”