Banxico’s de Leon: Peso to see new bouts of volatility if trade tensions intensify, data surprises

Dhwani Mehta FXStreet

The Bank of Mexico (Banxico), the country’s central bank, Governor Diaz de Leon was on the wires last minutes, via Reuters, commenting on the economic and monetary policy outlook.

Key Quotes:

Core inflation is a 'challenge,' showing greater resistance to decrease.

Very important to address factors credit ratings agencies have signaled to avoid further downgrade for state oil firm PEMEX.

Bank's board will pay attention to new information, uncertainty over coming weeks before evaluating additional monetary policy actions.

Mexico's Peso could see new bouts of volatility if international trade tensions intensify, economic data surprises.

Following the spike to 19.7615 seen in the US last session, the USD/MXN pair trades flat in the Asian trades so far this Friday. At the press time, the spot hovers around 19.61 levels, having found fresh bids once again near 19.58 region. Meanwhile, the above comments had little impact on the prices.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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