Daily digest market movers: Mexican Peso rises as traders shrugged off Banxico's cut
- Banxico’s board revealed that the Consumer Price Index (CPI) is expected to rise to 5.2% in Q3 and to edge lower to 4.4% in Q4, both readings for the remainder of 2024. They expect it will reach the 3% plus or minus 1% goal by Q4 2025.
- Core CPI is projected to hit 3.9% in Q4 2024 and reach 3% by the end of next year.
- Mexico’s inflation rate rose by 1.05% MoM, exceeding estimates of 1.02% and significantly higher than June’s 0.38%. Over the 12 months to July, inflation increased from 4.98% to 5.57%, in line with expectations.
- Core prices ticked up from 0.22% to 0.32% MoM, surpassing economists' projections of 0.29%. On an annual basis, however, inflation missed the 4.02% consensus but dipped slightly to 4.05%, showing improvement compared to June's 4.13%.
- Mexico’s Industrial Production dipped from 0.7% to 0.4% MoM but exceeded estimates of 0.3%. On an annual basis, it plunged more than the -0.1% YoY projected and came at -0.7%, further confirming that the economy is stagnating.
- The CME FedWatch Tool shows the odds of a 50-basis-point interest rate cut by the Fed at the September meeting at 52.5%, down from 57.5% a day ago.
- Banxico’s board revealed that the Consumer Price Index (CPI) is expected to rise to 5.2% in Q3 and to edge lower to 4.4% in Q4, both readings for the remainder of 2024. They expect it will reach the 3% plus or minus 1% goal by Q4 2025.
- Core CPI is projected to hit 3.9% in Q4 2024 and reach 3% by the end of next year.
- Mexico’s inflation rate rose by 1.05% MoM, exceeding estimates of 1.02% and significantly higher than June’s 0.38%. Over the 12 months to July, inflation increased from 4.98% to 5.57%, in line with expectations.
- Core prices ticked up from 0.22% to 0.32% MoM, surpassing economists' projections of 0.29%. On an annual basis, however, inflation missed the 4.02% consensus but dipped slightly to 4.05%, showing improvement compared to June's 4.13%.
- Mexico’s Industrial Production dipped from 0.7% to 0.4% MoM but exceeded estimates of 0.3%. On an annual basis, it plunged more than the -0.1% YoY projected and came at -0.7%, further confirming that the economy is stagnating.
- The CME FedWatch Tool shows the odds of a 50-basis-point interest rate cut by the Fed at the September meeting at 52.5%, down from 57.5% a day ago.
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