- USD/MXN extends its losing streak ahead of US CPI data scheduled for Tuesday.
- CME FedWatch Tool suggests a 73.8% probability of a rate cut in June.
- US Dollar suffered losses following the mixed employment data from the United States.
USD/MXN continues its downward trend following mixed employment data from the United States (US). The pair inches lower to around 16.80 during the European session on Monday. Negative sentiment surrounding the US Dollar Index (DXY) weakens the USD/MXN pair amid growing expectations of a Federal Reserve (Fed) rate cut in June.
According to the CME FedWatch Tool, there is a 73.8% probability of a rate cut in June. Furthermore, Federal Reserve (Fed) Chair Jerome Powell hinted at potential cuts in borrowing costs sometime this year, emphasizing that such actions would depend on the inflation trajectory aligning with the Fed's 2% target.
In February, US Nonfarm Payrolls added new jobs by 275K, exceeding January's figure of 229K and market expectations of 200K. However, US Average Hourly Earnings (YoY) increased by 4.3%, slightly below both the estimated and previous reading of 4.4%. Investors will likely observe the Consumer Price Index data from the United States (US) scheduled for Tuesday, along with Retail Sales and Producer Price Index data expected on Thursday.
On the Mexican side, the 12-Month Inflation rate increased by 4.40% in February. This figure represented a decline from a seven-month high of a 4.88% rise in January and was slightly lower than the forecasted increase of 4.42%. Core Inflation increased by 0.49%, higher than the previous 0.40% rise. However, Headline Inflation rose by 0.9%, which was lower than the expected 0.11% and the previous 0.89% increase. Market participants are eagerly awaiting the upcoming policy meeting of the Bank of Mexico (Banxico) on March 21.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD retargets the 0.6600 barrier and above
AUD/USD extended its positive streak for the sixth session in a row at the beginning of the week, managing to retest the transitory 100-day SMA near 0.6580 on the back of the solid performance of the commodity complex.
EUR/USD keeps the bullish bias above 1.0700
EUR/USD rapidly set aside Friday’s decline and regained strong upside traction in response to the marked retracement in the Greenback following the still-unconfirmed FX intervention by the Japanese MoF.
Gold advances for a third consecutive day
Gold fluctuates in a relatively tight channel above $2,330 on Monday. The benchmark 10-year US Treasury bond yield corrects lower and helps XAU/USD limit its losses ahead of this week's key Fed policy meeting.
Bitcoin price dips to $62K range despite growing international BTC validation via spot ETFs
Bitcoin (BTC) price closed down for four weeks in a row, based on the weekly chart, and could be on track for another red candle this week. The last time it did this was in the middle of the bear market when it fell by 42% within a span of nine weeks.
Japan intervention: Will it work?
Dear Japan Intervenes in the Yen for the first time since November 2022 Will it work? Have we seen a top in USDJPY? Let's go through the charts.