Daily digest market movers: Mexican Peso shrugs off soft US data, drops on risk aversion

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  • September’s Citibanamex Survey showed that private economists estimated the Mexican economy will grow 1.5% in 202$, down from 1.7%.
  • Regarding inflation, the poll revealed that the Mexican Consumer Price Index (CPI) in 2024 would end at 4.60%, and next year it will hit 3.8%. Core CPI is forecast to end 2024 at 3.9%, and by 2025 it is expected to dive to 3.71%.
  • The survey added that Banxico is expected to lower rates to 10.25% in 2024 and to 8.25% in 2025. The USD/MXN exchange rate is forecast to end 2024 at 19.50 and 2025 at 19.85.
  • INEGI revealed that Mexico’s Auto Exports rose by 1.7% YoY in August after declining 2.7% YoY in July. Auto Production, meanwhile, rose by 8.3% YoY against the 2.7% of July.
  • US Nonfarm Payrolls jumped by 142K in August but missed the mark of 160K. Should be said that July’s figures were downwardly revised from 114K to 89K.
  • The Unemployment Rate dipped from 4.3% to 4.2%, while Average Hourly Earnings rose from 3.6% to 3.8% YoY in August.
  • Data from the Chicago Board of Trade (CBOT) suggests the Fed will cut at least 104 basis points this year, up from 103 bps a day ago, according to the fed funds rate futures contract for December 2024.

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