- Mexican peso retreats against the dollar ahead of the Fed.
- Climb up on Treasury bond yields driven to the dollar.
USD / MXN is on the rise on Wednesday, although in recent hours it fell back from the highs, cutting gains. Ltrading had reached 20.81, the highest since Monday and then returned below 20.70.
The The advance was driven by a rise in the dollar with the fall in Treasuries. The 10-year rate reached 1.66%, the new high in more than a year. But the advance of the greenback was limited, before the Fed and before a bullish rebound of the futures of the indices of Wall Street.
Caution before knowing the Federal Reserve decision, plus some optimism in the markets put a limit on the advance of the USD / MXN. In the American afternoon, the US central bank will announce its decision and publish new projections from the FOMC members. Changes in monetary policy are not expected. What the Fed says about yields can have a big impact on the market.
In MexicoThe stock market’s leading index, the IPC hit its highest level in 29 months on Tuesday after rising for the seventh straight session. The 0.91% rise occurred even despite mixed results on Wall Street.
The optimism seen in equity markets is not being enough to prop up emerging market currencies well. Also in the last five days, the Mexican peso has been among the best performers.
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