Daily digest market movers: Mexican Peso retreats on Banxico’s dovish minutes
- Last Thursday, Mexico’s Supreme Court voted eight to three to "consider a constitutional challenge to the controversial judicial overhaul enacted last month," which would allow the election of judges and Supreme Court magistrates through electoral vote.
- The Mexican Peso appreciated following the release of the latest meeting minutes, even though it showed that Banxico is expected to continue lowering borrowing costs.
- According to Banxico’s poll, the central bank is projected to lower rates by 50 bps to 10% for the remainder of 2024. Meanwhile, the USD/MXN exchange rate will end at around 19.69.
- Mexico’s economy is projected to grow by 1.45% in 2024, lower than August’s 1.57%.
- US September CPI was 2.4% YoY, exceeding estimates of 2.3% yet below August data. Core CPI rose by 3.3% YoY, up from forecasts and August's 3.2%.
- CPI rose by 0.2% monthly, unchanged from the previous month, up from the 0.1% projected by the consensus. Core CPI was unchanged at 0.3% above estimates of 0.2%.
- Initial Jobless Claims for the week ending October 5 rose by 258K, up from 225K the previous week, above estimates of 230K.
- Data from the Chicago Board of Trade via the December fed funds rate futures contract shows investors estimate 47 bps of easing by the Fed toward the end of 2024.
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