larger than 25 bps, the Mexican peso rally has extended to seven consecutive days. At the time of writing, the USD/MXN is trading at 20.1706, down some 0.53%, reflecting the peso strength.
Risk aversion is back again. European and US equities are falling, while the greenback stays firm, as shown by the , up 0.28%, at 98.701. US Treasury yields are almost flat, as shown by the 10-year T-note, down for the first time in the week one basis point, at 2.366%.Ukraine’s President Zelensky said that talks with Russia are confrontational and complex. At the same time, the Russian Foreign Minister Lavrov commented that NATO’s eastward expansion continues irrespective of whether a particular nation is a member.
last week’s FOMC and Russia’s invasion of Ukraine has led us to revise our forecast to factor in another two 50bp increases and two more 25bp increases, taking the policy rate up to 8.00% by year-endThe US economic docket featured more Fed speakers. Earlier, Fed Chief Powell talked about digital currencies, leaving monetary policy aside.