Daily digest market movers: Mexican Peso remains flat despite posting strong Retail Sales
- Mexican Retail Sales in April increased from 0% to 0.5%, above estimates of -0.3% MoM. They jumped from -1.7% to 3.2%, more than doubling projections by analysts for the 12 months to April.
- USD/MXN stabilizes following last week’s verbal intervention by Banxico Governor Victoria Rodriguez Ceja, who said the central bank is attentive to volatility in the Mexican currency exchange rate and could act to restore “order” in markets.
- Volatility in the USD/MXN exchange rate could prevent Banxico from cutting interest rates for the second time in the year at the upcoming meeting on June 27. A rate cut could weaken the Mexican Peso and expose the USD/MXN year-to-date high at 18.99.
- US Initial Jobless Claims for the week ending June 15 climbed 238K, exceeding estimates of 235K but lower than the previous reading of 243K.
- US Building Permits plunged 3.6% in May, from 1.44 million to 1.386 million. Housing Starts for the same period dropped from 1.352 million to 1.277 million, a fall of 5.5%.
- The CME FedWatch Tool shows odds for a 25-basis-point Fed rate cut at 58%, down from 62% on Wednesday
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