Mexican Peso drops sharply, trading at 18.09, with market focus on upcoming inflation and GDP data.
Mexico's economy decelerates, with retail sales missing expectations, fueling a bleak outlook.
Banxico expected to cut rates by 25 basis points in August, with economists revising year-end USD/MXN forecast to 18.80.
The Mexican Peso dropped sharply during Tuesday’s North American session, losing more than 1.00% against the Greenback, which registers mild gains amid falling US Treasury bond yields. Market participants expect the release of Mexico’s mid-month inflation figures on Wednesday. This, along with the release of US Gross Domestic Product (GDP) and inflation data, could dictate the path of the Mexican currency. The USD/MXN trades at 18.12 after bouncing off daily lows at 17.90.
Mexico’s economy continued to decelerate in May, according to the Economic Activity Indicator, released by the Instituto Nacional de Estadistica, Geografia e Informatica (INEGI). Retail Sales for the same period missed the mark, creating a gloomy economic outlook.
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