- The dollar continues to weaken in the market in general due to a climate of optimism in the stock markets.
- USD / MXN falls back for the second day in a row, remains above key levels.
- Year-on-year inflation in Mexico falls to its lowest since March in the second half of August.
The USD / MXN is testing the zone of the day’s lows around 20.30. The Mexican peso continues to recover ground against the dollar, although it is still far from where it was a week ago.
The generalized weakness of the dollar prevented a greater appreciation of the USD / MXN, that despite the decline in recent sessions remains firm above 20.15 and above the 200-day simple moving average (20.10).
The Greenback remains under pressure due to stability in Treasury bond yields and the rise in equity markets. The focus of analysts is on what will be the presentation of Jerome Powell, the chairman of the Federal Reserve at the Jackson Hole symposium on Friday.
Mexico: inflation falls back in the second half of August
The National Institute of Statistics and Geography (INEGI) of Mexico reported Tuesday that “In the first fortnight of August 2021, the National Consumer Price Index (INPC) decreased 0.02% compared to the immediately preceding fortnight; annual inflation was 5.58% ”. It is the lowest year-on-year level since the second half of March 2021.
The data was below expectations, which may be a good sign for Banco de México officials. On the downside, core inflation increased 0.28%, more than 0.20% of the market consensus.
Technical levels
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