Bank of Mexico

Another Batch of Important U.S. Data Due Later Today

May 14, 2021

Thursday’s ebbing of inflation phobia in financial markets extended into overnight trading, and now investors await this morning’s release of U.S. import prices, retail sales, industrial production, and the U. Michigan index of consumer sentiment. Equity markets in the Pacific Rim rebounded 2.3% in Japan, 1.8% in China, 1.1% in Hong Kong, kand 1.0% in […] More

Dollar Ending Week on an Up-Note But Euro Steady

March 26, 2021

The dollar overnight appreciated another 0.35% on a trade weighted basis, but strength wasn’t even this time. The dollar rose 0.6% against the yen and 1.0% relative to the Turkish lira. The key EUR/USD relationship is unchanged, and the greenback has slipped 0.4% versus the New Zealand and Australian dollars, 0.3% vis-a-vis the Canadian dollar […] More

Dollar Rose Slightly

February 12, 2021

The dollar recovered 0.5% against the Mexican peso and New Zealand dollar, 0.3% relative to the Swiss franc and Australian dollar, 0.2% versus the euro, yen, and loonie, and 0.1% against sterling overnight. On a trade-weighted basis, the U.S. currency is up 0.2% and trading in the middle of today’s high-low corridor. Lunar New Year […] More

Last Meaningful Week of 2020 Drawing to Close

December 18, 2020

Ahead of the approaching year-end holidays, this week saw a rush of central bank policy reviews and data releases, many¬† coming a couple of days earlier in December than is customary in other months. Foreign exchange trading tends to lose some breadth and depth in the final weeks of December, making currency relationships prone to […] More

Additional Leap in U.S. Covid Cases; Euroland 3Q GDP and U.S. PPI Headline Data Menu

November 13, 2020

The dollar is slightly weaker today, with overnight losses of 0.4% against the peso, 0.3% versus sterling, 0.2% vis-a-vis the yen and Australian dollar, and 0.1% relative to the Swiss franc. The dollar is also unchanged against the yuan and euro. Covid News continued to weigh on Asian equities, which dropped 0.9% in China, 0.7% […] More

Seventh Bank of Mexico Interest Rate Cut of 2020

September 24, 2020

The five-member Bank of Mexico Governing Board decided unanimously to cut its key interest rate to 4.25% from 4.5%. This was the seventh reduction reduction so far this year but only half the the incremental change in the the previous five adjustments but matches the size of the initial cut in February. Although Mexican GDP […] More

Another Mexican Central Bank Rate Cut

August 13, 2020

Over the past six months, policymakers at the Bank of Mexico have engineered six interest rate cuts totaling 275 basis points. The last five of these moves including today’s announcement were cuts of 50 basis points, and the overnight interbank interest rate now becomes 4.50%, which is a 3-1/2 year low. This latest easing, according […] More

Another Mexican Central Bank Interest Rate Cut

June 25, 2020

The Governing Board unanimously cut the overnight interbank interest rate by 50 basis points to 5.0%. This was the fourth straight monthly cut of 50 basis points, and there was also a 25 basis point cut made in February and three 25-bp reductions during the last four and a half months of 2019. The rate […] More

Bank of Mexico’s Fourth Straight Rate Cut …and More Likely in Future

May 14, 2020

The first overnight rate cut of 25 basis points done in February has been followed by 50-basis point moves in March, April and now May. Today’s action was larger than some analysts anticipated but decided by a unanimous 5-0 vote. The key rate’s new level of 5.5% represents a 3-1/2 year low and a total […] More

More Macroeconomic Relief around the World

April 22, 2020

The U.S. Congress approved a fourth fiscal package that’s just a tad short of $500 billion. South Africa unveiled $26 billion of fiscal support, which is equal to about a tenth of GDP. The Bank of Mexico Governing Board held an unscheduled meeting, cutting its policy rate for the third time this year. Along with […] More

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