The Mexican Peso trades variably against its main counterparts amid data releases and changing interest rate expectations.
MXN is rising against the USD as bets on a September rate cut mount; versus European currencies, the Peso lags.
Stubbornly high inflation in the old continent could delay rate cuts from the BoE and ECB, supporting European FX.
The Mexican Peso (MXN) is trading mixed against its key counterparts on Wednesday. MXN is rising versus the US Dollar (USD), which has weakened due to increasing bets the Federal Reserve (Fed) will lower borrowing costs in September. This, in turn, has weighed on USD since lower interest rates attract less foreign capital inflows.
Against the Pound Sterling (GBP), the Mexican Peso is weakening after UK Consumer Price Index (CPI) data showed inflation remained stubbornly high in June. This suggests the Bank of England (BoE) could delay cutting interest rates in the UK. The same is true of EUR/MXN, which is up over a percent after the release of Eurozone inflation data showed similarly persistent inflation in the region.
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