Mexican Peso trades near lows of the day, USD/MXN above 19.30.
Weak Mexican auto production and export data highlight economic slowdown, influencing market sentiment.
Banxico may consider lowering borrowing costs at the August 8 meeting due to slower growth and lower inflation.
The Mexican Peso extended its daily losing streak to four against the Greenback. It remained above the psychological 19.00 figure for the third straight day after the exotic pair breached the previous year-to-date (YTD) high of 18.99. A light economic docket on both sides of the border keeps the Peso adrift to market mood dynamics. The USD/MXN trades at 19.37, climbing some 0.26%
Risk appetite improved, yet the Peso failed to gain traction. Nevertheless, geopolitical risks could shift sentiment sour and spark a flock to safety, weakening most emerging market currencies against the US Dollar.
Auto Production in Mexico grew slower than in June, while Auto Exports plunged. This underscores the ongoing economic slowdown, which coupled with lower inflation readings can allow the Bank of Mexico (Banxico) to lower borrowing costs at the upcoming meeting on August 8.
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