The Mexican peso has resumed its decline following a brief rebound, with rising geopolitical tensions and economic outlook concerns primarily driving this downtrend, showcasing a demand for safe-haven assets.
Despite a slight 0.1% uptick in retail sales month-on-month in September, the labor market remains strained, with employment falling by 0.4%, adding pressure on the peso.
Year-on-year, retail sales have declined by 1.5%, revealing weaknesses in crucial economic sectors, even as real wages have increased, creating a disconnect between wages and economic health.
The outlook for the peso remains bearish, with mixed indicators suggesting temporary relief from wage increases while persistent employment weaknesses could lead to further depreciation.
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