Peso Rallies After Retail Sales Announcement
• Peso Appreciates Following Optimistic Retail Sales Data.
• Central Bank of Mexico Reaffirms Monetary Policy Objectives.
The Peso gained footing and rallied after Mexican retail sales year-on-year improved for the second straight month in January 2015, exceeding leading economists’ expectations of 3.0 percent and crossing the wire at 4.7 percent, up from 2.4 percent in the previous period. The National Institute of Statistics and Geography also announced that on monthly basis, retail sales came in at -0.8 percent, well below leading analysts’ expectations of 0.7 percent, however above the -0.9 percent figure in December 2014.
Following the retail sales announcement, the central bank of Mexico Gov. Agustin Carstens announced to the public that both he and his staff would be keeping “options open” when determining plans for a monetary policy adjustment in response to decisions made by the Federal Reserve. The Mexican central bank kept its overnight lending rate target a record low 3 percent in January but, investors should be keen to watch the results of the next policy meeting scheduled for March 26, 2015.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.