15 Jun 2015
USD/MXN rises back above 15.400
FXStreet (Córdoba) - The Mexican peso is falling modestly against the US dollar, retreating for the second day in row after rising sharply last week. USD/MXN rose back above 15.400, but the recovery was capped by 15.450.
Price rebounds but still near June lows
Last week USD/MXN lost 2.25% and fell from record highs at 15.767 to 15.341. It managed to stabilize above 15.350 and today is rising for the second trading day in a row but still remains near June lows.
Weak US data, low inflation and minutes ahead in Mexico
Today, weak US industrial production data removed strenght from the dollar after showing a decline of 0.2% in May against expectations of a 0.3% gain. In Mexico, the next important report will be on Thursday with the minutes of the latest central bank meeting. “Despite hawkish talk from Governor Carstens, inflation is now below the 3% target and slack in the economy should keep it from rising much in H2. We see steady rates. Minutes should highlight that slack, as well as the (so far) lack of any inflation pass-through from the weaker peso”, said analysts from Brown Brothers Harriman.
Price rebounds but still near June lows
Last week USD/MXN lost 2.25% and fell from record highs at 15.767 to 15.341. It managed to stabilize above 15.350 and today is rising for the second trading day in a row but still remains near June lows.
Weak US data, low inflation and minutes ahead in Mexico
Today, weak US industrial production data removed strenght from the dollar after showing a decline of 0.2% in May against expectations of a 0.3% gain. In Mexico, the next important report will be on Thursday with the minutes of the latest central bank meeting. “Despite hawkish talk from Governor Carstens, inflation is now below the 3% target and slack in the economy should keep it from rising much in H2. We see steady rates. Minutes should highlight that slack, as well as the (so far) lack of any inflation pass-through from the weaker peso”, said analysts from Brown Brothers Harriman.