- The Mexican peso strengthens during the day, rising 0.73% against the dollar.
- The Minutes from the last Banxico meeting highlighted concerns about inflation and labor wages as new director Victoria Rodríguez takes command of Banxico.
- Mixed macroeconomic data from the US weakened the dollar against the Mexican peso.
On Thursday, during the American session, the MXN it advances in the American session, trading at 20.4387 at time of writing. Market sentiment is mixed, as European stock indices closed in the red, while US equity markets advanced, with the exception of the Dow Jones, down 0.34%.
The Minutes from the last Banxico meeting show that its members are concerned about inflation and higher wages
On Thursday, the Mexican central bank, also known as Banxico, released its minutes of the meeting where the central bank raised benchmark rates by 50 basis points, to 5.50%.
The Minutes showed that all members said that expectations for headline and core inflation for 2021, 2022 and for the next 12 months rose again. Additionally, policymakers noted that economic integration with the United States and high levels of inflation drove high prices in Mexico.
Banxico members said inflationary pressures forecasts were revised up, especially in 2022. In addition, the 22% increase in the minimum wage between the Mexican government and business groups could add upward pressure on labor costs, they noted. Banxico’s policy makers.
Technical levels
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