• The Mexican peso appreciates, shrugging in the pigeons Banx’s attitude, weaker economic perspectives.
• December retail sales in Mexico exceeds estimates, but leisurely from the previous month.
• Banxico minutes confirm the pigeon attitude, emphasizing the progress in disinflation.
• The final reading of GDP in the 4th GDP expected to confirm the economic slowdown on Friday.

The Mexican peso organized a return, rising by over 0.23% compared to Greenback. Retail sales in December exceeded the estimates, but delayed compared to the numbers from the previous month. USD/MXN trades at 20.39 after reaching the highest level 20.46.

The Mexican economic document revealed that consumer expenditure fell compared to November data, but exceeded the despondent expectations of private economists. Meanwhile, Banco de Mexico (Banxico) revealed his last minutes of meetings, confirming the pigeon attitude of the Mexican institution and suggested that further rates of rates are obvious.

On Wednesday, Banxico revealed a quarterly report for the fourth quarter of 2024, in which the Central Bank reduced its growth forecast to 2025. In addition, the bank expects weaker consumption and private expenses, reflecting the highly uncertain environment.

As for their reduction of 50basis rates in the latest monetary policy decision, the management council ruled out that they are convenient with the current level of inflation. He emphasized the progress of the disinflation process.

On Friday, the Instituto Nacional de Estadistica geographer E Informatica (Inegi) will contain the final GDP reading for Q4 2024, which is to demonstrate quarterly cramps and developing every year.

Daily Digest Market Movers: Mexican climbing peso, dissatisfied by weaker economic perspectives

• The last minutes of Banxico have admitted that the risk of growth is tilted to the minus. The Management Board expects the economy to boost by 0.6% in 2025, compared to 1.2% earlier. The forecast is much lower than in the Ministry of Finance of Mexico at 2.3%, and below the Citi expectations study of 1%.
• In 2026, Banxico estimates that Mexico’s economy will boost by 1.8%.
• Retail sales in Mexico increased by 0.1% of mom, above estimates to reduce by -0.4%. Every year, sales have improved from -1.9% of the contraction to -0.2%.
• The President of Mexico, Claudia Sheinbaum, said that Marcelo Ebrard, the secretary of the Economy of Mexico, will meet today with the secretary of American trade about tariffs.
• The discrepancy of monetary policy between Banxico and Fed favors another USD/MXN Upside. The FED is expected to maintain constant rates, while Banxico again provides for a reduction in rates by 50 base points at the next meeting.
• USD/MXN develops due to the weakening of green -neckers. The American dollar index (DXY) dropped by 0.65% to 106.45.
• Commercial disputes between the USA and Mexico remain in the foreground. Although these countries have previously been found a common plane, USD/MXN traders should know that 30 days will occur and voltages may appear at the end of February.

Technical perspectives USD/MXN: Mexican peso is stable because USD/MXN is below 50-day fame

USD/MXN continued consolidating below the 50-day straight movable average (SMA), keeping under control. Further weakness can lead a exchange rate below 100-day SMA at 20.22 and threaten to question the psychological figure 20.00. If it is cleaned, the next support would be low on October 18, 2024 at 19.64, before the 200-day SMA at 19.37.

And vice versa, if USD/MXN climbs next to the 50-day SMA, further profits are ahead of the 20.50 sign.