USD/MXN collapses to 7-year lows despite risk-off sentiment in markets

dovish commentary ahead of the next week’s monetary policy meeting. Even though a risk-off impulse is present in the markets, the USD/MXN is trading at around 17.3600s after hitting a daily high of 17.3915.Sentiment remains deteriorated, as shown by US equities. Higher US Treasury bond yields cushion the USD/MXN from falling further, as investors bet the US Federal Reserve would hikein July after skipping the June meeting. The CME FedWatch Tool portrays odds for a 25-bps increase at 50.

Nevertheless, G10 central banks tightening monetary policy after skipping some rate-setting decisions keeps investors nervous about the Fed’s next move. During the last week, policymakers stressed that a pause is necessary to assess the impact of the cumulative tightening in the economy.featured the US Trade Balance, showing the deficit broadened in April, compared with March’s data. Numbers came at $-74.6B in April of 2023, vs. March’s $-60.B.

Finance Finance Latest News, Finance Finance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

USD/MXN dips amidst US economy slowdown; MXN threatens new year-to-date lowsUSD/MXN drops close to 0.50% as the week begins, undermined by falling US bond yields, courtesy of mixed data, even though last week’s job report in t
Source: FXStreetNews - 🏆 14. / 72 Read more »