Mexican President Andres Manuel Lopez Obrador’s decision to pause relations with the US and Canadian ambassadors this wee will continue to weigh on the Mexican Peso.
Comments from US Ambassador Ken Salazar, expressed on August 22, were the reason behind AMLO’s decision. Salazar said that the judiciary reform threatens the rule of law and added that “the direct election of judges represents a major risk to the functioning of Mexico’s democracy. Any judicial reform must have safeguards that guarantee that the judiciary is strengthened and not subject to the corruption of politics.”
US GDP for Q2 2024 saw a second estimate that jumped from 1.4% in Q1 to 3%, exceeding estimates of 2.8%. The Personal Consumption Price Expenditures (PCE) Deflator hinted that inflation dipped from 3.1% to 2.5% QoQ, slightly higher than the 2.3% foreseen.
Initial Jobless Claims for the week ending August 24 dipped from 233K to 231K, below estimates of 232K.
Traders will eye Fed speakers and the Fed’s preferred inflation gauge, the core Personal Consumption Expenditures Price Index (PCE), which arrives on Friday.
Data from the Chicago Board of Trade (CBOT) suggests the Fed will cut at least 98 basis points (bps), according to the fed funds rate futures contract for December 2024.
San Miguel Times
Newsroom
