Background on the Relevance of the Individual Mentioned
Felipe Mendoza, an analyst at ATFX, is a key figure in this news article. As an expert in financial markets, his insights on the implications of US inflation data for the Mexican economy and monetary policy decisions provide crucial context.
Key Developments
Mexican Peso Appreciation Against the Dollar
The Mexican peso appreciated against the US dollar on Tuesday morning due to a general weakening of the greenback following the release of US inflation figures that showed lower-than-expected growth in April.
- The spot exchange rate is currently at 19.5100 pesos per dollar.
- Compared to the previous day’s official closing rate of 19.6039 pesos, this represents a gain of 9.39 centavos, or 0.48%, for the peso.
- The dollar’s range is between 19.6405 and 19.5029 pesos.
- The Dollar Index (DXY) from the Intercontinental Exchange, which compares the US dollar to a basket of six currencies, fell by 0.49% to 101.31 points.
US Inflation Data and Its Impact
The Consumer Price Index (CPI) in the United States increased by 2.3% annually in April, falling short of the consensus estimate of 2.4%. The core inflation rate rose by 2.8% annually, aligning with analysts’ expectations and remaining unchanged from the previous month.
According to Felipe Mendoza, these figures could generate market volatility as they may influence perceptions of the US economic health and future monetary policy decisions by the Federal Reserve (Fed).
Local Market Expectations
The Mexican market anticipates the upcoming monetary policy decision by Banxico (Mexico’s central bank) on Thursday. Experts widely predict that Banxico will reduce its reference rate by another 50 basis points, lowering it to 8.50%, marking the third consecutive substantial cut of this magnitude.
