MEXICAN PESO RECOVERS AS MARKET SENTIMENT IMPROVES
- The Mexican Peso is strengthening as risk appetite improves.
- Recent mixed US data is dispelling fears of a hard landing for the US economy.
- Political risk remains a negative background factor for the Peso.
The Mexican Peso (MXN) trades higher in its key pairs on Wednesday amid a cautiously optimistic market mood. European equities are trading modestly higher and the increasingly held view that the US Federal Reserve (Fed) will be able to lower interest rates in an orderly fashion – avoiding disruptions to the economy – is further buoying investor risk appetite.
Several lower tier US data releases have come out over recent days that have painted a mixed picture and helped allay concerns the economy is heading for a hard landing. These include higher-than-expected Consumer Confidence in August and a surge in US Durable Goods Orders in July released Monday, though labor-market pessimism lingers and the Richmond Fed Manufacturing Index sank below estimates.
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