Daily digest market movers: Expectations of uptick in Mexican inflation boosts Peso

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  • The Mexican Peso rises on expectations that March’s inflation would rise above February’s data, suggesting that the Banxico could pause its easing cycle.
  • Mexico’s inflation forecasts for March expect the Consumer Price Index (CPI) to increase from 0.09% to 0.36% MoM and to 4.5% in the twelve months to March, up from 4.5%.
  • Core CPI is foreseen rising to 0.5% from 0.49% MoM, while yearly figures would edge lower to 4.62%, down from 4.64%.
  • US Treasury yields climb, though they fail to boost the Greenback, which is treading water as shown by the US Dollar Index (DXY). The DXY falls 0.10% to 104.18.
  • Market participants' expectations that the Fed would cut rates three times this year are waning, as shown by the CME FedWatch Tool. The odds for June edged below 52%, while for July they stood at 69%.


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