The Mexican peso faces upward pressure amidst global economic uncertainty, especially as anticipation builds over key U.S. economic data releases that could impact future monetary policy.
The recent 0.3% decline in retail sales, along with a 1.2% annual contraction, highlights weak domestic demand and raises concerns about the overall fragility of the Mexican economy.
A dovish stance by the Federal Reserve could weaken the dollar, potentially offering a reprieve to the peso, while a hawkish approach could further strain the Mexican currency.
Banxico's next interest rate decision is critical; they must balance the need for economic growth against the risks of persistent inflation that could weaken the peso.
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