USD/MXN drops following disappointing US jobs report and a decline in Treasury yields; market anticipates upcoming US inflation data.
Mexican inflation continues its downward trend, as the CME FedWatch Tool points to high chances of a Fed hike; Banxico is expected to hold rates.and broad US Dollar weakness, sparked by a fall in US Treasury bond yields, while traders brace for the release of inflation figures in the United States . At the time of writing, the USD/MXN is trading at 17.0611 after hitting a daily high of 17.1735, down 0.
The last week’s jobs report in the US continues to drag the greenback lower, as the data showed the economy adding just 209K jobs in June, below estimates, signaling the labor market is cooling. That triggered another leg-down in the USD/MXN pair, even though the Unemployment Rate edged lower, suggesting the opposite. That, alongside a rise in the Average Hourly Earnings expanding 4.4% YoY, above the prior month’s 4.2%, warrants the tightness of the labor market.
Aside from this, USD/MXN traders are eyeing the release of June’s US inflation figures on Wednesday at around 12:30 GMT. The is expected to decelerate to 3.1% YoY from 4%, while the core CPI, which excludes volatile items, is foreseen to dip to 5% YoY beneath May’s 5.3%.
United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Daily_Forex - 🏆 567. / 51 Read more »