Bank of Mexico

Bank of Mexico’s Overnight Interbank Rate Lifted Again

November 12, 2021

Officials at the Bank of Mexico by a vote of four to one authorized a fourth straight 25-basis point hike of the overnight interbank rate to 5.0%. Before the magnitude of global inflationary pressure was understood, the rate last February had been sliced by 25 basis points to 4.0% to culminate 325 basis points of […] More

A Mostly Inconsequential Friday

November 12, 2021

The dollar marked time overnight. It’s weighted DXY value did not climb further after reaching highs on Thursday not seen since July 2020. The dollar is also unchanged from Thursday closing levels against the euro, yen, loonie, and kiwi, up 0.3% versus the Turkish lira and 0.2% against the Swiss franc but down 0.2% vis-a-vis […] More

Central Banks in Mexico and Colombia Lift Interest Rates by 25 Basis points

September 30, 2021

The Bank of Mexico’s overnight interest rate, which had been cut by 25 basis points in February to culminate a cumulative reduction of 325 basis points over a one-year period, has been subsequently raised by 25 basis points three subsequent times to 4.75% to counter rising inflation and ensure that inflation will settle back to […] More

Robust Sentiment Indices

June 25, 2021

The dollar posted fractional losses overnight, dipping 0.1% on balance against the euro, yen, loonie, Swiss franc, Aussie dollar, New Zealand dollar, and on a DXY weighted basis. The dollar also fell 0.3% versus the Chinese yuan, Mexican peso, and Turkish lira. Equity markets advanced 1.4% in Hong Kong, 1.2% in China and 0.7% in […] More

Bank of Mexico Reverses Rate Cut Done Four Months Ago

June 24, 2021

Mexico’s overnight interbank rate target had undergone six reductions totaling three percentage points in 2020 from 7.25% to 4.25%, and that easing cycle was culminated by a 25 basis point in February this year. Mexican real GDP had imploded 8.25% last year and experienced an eighth consecutive year-on-year drop last quarter, that time by 3.6%. […] More

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

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