Mexican Peso surges to eight year high against US Dollar amid lack of catalyst
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The Mexican Peso rallied to a new eight-year high against the US Dollar with the USD/MXN pair breaching last year’s low of 16.62, extending its losses to the 16.50s. Mexico’s narrowed trade deficit and the tighter labor market in Mexico contributed to Peso's ascent, surpassing expectations. Mexico’s economic schedule revealed that the Balance of Trade clocked a narrower deficit than January’s figures, but it exceeded the consensus. In the meantime, the labor market remains tight as the Unemployment Rate was below the previous month’s figures and estimates. Banxico Governor Victoria Rodriguez Ceja remained dovish via an interview with El Financiero. Governor Rodriguez commented that the battle against inflation hasn’t been concluded, though adding that in upcoming meetings it would discuss further rate cuts to the main reference rate. Banxico revealed international reserves grew to $216.9 billion, adding $411 million in US Dollars up to March 22, 2024. Attention turns to Federal Reserve Governor Christopher Waller's comments on Wednesday.
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