We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Could this be the turning point for the #USD? My majors-based #Dollar index is testing key support from April with positive RSI divergence. If sentiment continues improving, that may offer the fundamental scope to continue lower towards March lows https://t.co/vIIvyF8zpU
  • The scale of the monthly chart can be particularly useful in spotting systemic developments. Gold for example reflects enormous lift of a haven during supposed 'risk on'. The candle chart is gold equally weighted in USD, EUR, GBP and JPY. Orange is $GC_F https://t.co/4yEjT7FvGA
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.49% 🇨🇭CHF: 0.30% 🇪🇺EUR: 0.25% 🇳🇿NZD: -0.06% 🇨🇦CAD: -0.06% 🇯🇵JPY: -0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/OR9TIAZM1e
  • Food for thought https://t.co/WyOnOvnPbM
  • More people have filed for unemployment in the United States in the last three months than the entire population of Canada... In other news, $QQQ is just ~3% from its all-time high!
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 2.85% Gold: 0.73% Oil - US Crude: -0.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/tCGrDwpnas
  • There really is no “taking one day off Twitter without something massive happening” is there? https://t.co/xRQ4wzhA43
  • With $EURUSD clearing 1.1000 this past week and the big swing the past few weeks, it seems remarkable progress for the benchmark currency pair. But consider the monthly picture. It is still awaiting the sentiment nod... https://t.co/4jBDlHwEqg
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.03%, while traders in US 500 are at opposite extremes with 75.77%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/BUbAYHNPIt
  • Amid escalating China tension, Australian Dollar risk reversals indicate that the bullish bias recently enjoyed by AUD/USD could soon unwind and pressure spot prices back lower. Get your AUD/USD technical analysis from @RichDvorakFX here: https://t.co/ZAHEwxNrEW https://t.co/cIFgSuoWF2
Mexican Central Bank Doubled Down on Policy to Fight Inflation

Mexican Central Bank Doubled Down on Policy to Fight Inflation

2016-12-30 00:04:00
Varun Jaitly,
Share:

Talking Points:

  • Mexican Central Bank members unanimously voted to raise interest rate by 50 basis points
  • Mexican Peso depreciation and inflation pushed Banxico members to double down on policy
  • Members see consumer price index reaching 3% growth by 2018, weak Peso seen as a risk

See what live coverage is scheduled for key event risk in the FX and capital markets on the DailyFX Webinar Calendar

The Mexican central bank released minutes from its most recent policy meeting where members voted unanimously to raise interest rates by 50bps. The hike was 25bps more than expected, adding a sense of urgency to raise rates, as echoed in the meeting minutes. Banxico members noted that a hike was necessary even if the Federal Reserve choose to hold its own rates in December. Banxico members stated that it was important to double down to keep prices stable, with their main focus being inflation and risk to government finances.

Inflation was a major theme in the minutes, as Mexican Peso depreciation was seen as the main risk to CPI. The US presidential election and the subsequent depreciation in the peso have impacted consumer prices, as some members are concerned it could also affect long-term forecasts. In the near-term, most members see higher inflation as transitory and likely to converge at 3 percent in 2018. Another key point that members identified was the impact of central bank actions and the exchange rate on increasing sovereign debt risk.

After the release of the minutes, the USD/MXN exchange rate was little moved. Around the time of the back-to-back US (Federal Reserve) and Banxico rate decisions – on December 14th and 15th respectively – the exchange rate reported a substantial reaction. The peak low to high response to the Fed hike results in a near 2.5 percent climb for the pair. With the half-a-percent hike from the Mexican policy authority the day after, it retreated as much as 1.9 percent from that 24 hour period high.

Mexican Central Bank Doubled Down on Policy to Fight Inflation

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.