Bank of Mexico
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
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
