The Mexican Peso trades lower in its key pairs ahead of the release of Banxico’s June meeting Minutes.
Uncertainty over the trajectory of future monetary policy in Mexico is making traders hesitant to place bets.
The Peso weakens the most against the Pound after the release of better-than-expected UK GDP data.
The Mexican Peso (MXN) trades mixed in its key pairs on Thursday – rising versus the US Dollar (USD) but falling against the Pound Sterling (GBP) and the Euro (EUR). MXN’s weakness versus the Pound can be attributed to the release of better-than-expected UK Gross Domestic Product (GDP) data for May, which came out at 0.4% month-over-month, roundly beating economist’s estimates of 0.2%.
Traders are also hesitating ahead of the release of the Minutes of the Bank of Mexico’s (Banxico) last policy meeting. Uncertainty regarding the trajectory of interest rates has increased after the release of higher-than-expected headline Mexican inflation data for June. The impact of the Peso’s devaluation following the June election and the imported disinflation thus anticipated, are further factors complicating the outlook.
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