Investors’ sentiment deteriorated as the US Dollar (USD) advanced. Traders seeking safety bought the US Dollar, as shown by its US Dollar Index (DXY). The DXY, which tracks the American Dollar value against a basket of six currencies, extends its gains, up 0.56%, at 102.140.
Expectations for the upcoming May meeting of the US Federal Reserve, the CME FedWatch Tool, foresees an 88.7% chance for a 25 bps rate hike to the 5.00% - 5.25% range.
Earlier, a report by the New York Fed revealed that manufacturing activity in the region unexpectedly expanded in April due to a jump in new orders and shipments. The Empire State Manufacturing Index advanced 10.8, above estimates for a -18 plunge. The poll highlighted that factories were more optimistic about general business conditions.
On the Mexican front, a light economic calendar keeps traders leaning on the latest monetary policy decision by the Bank of Mexico (Banxico), which raised rates by “only” 25 bps to 11.25% after a series of 50 and 75 bps rate hikes to the TIIE. Banxico’s moderated the pace of interest-rate increases as the institution is near to end of its tightening cycle.
The latest inflation data in Mexico witnessed a deceleration from 7.62% in February to 6.85% in March. However, the core reading remained above 8%, at 8.09%, from the prior’s month 8.29%, proving to be stickier than foreseen.
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