- MXN falls 0.6% to 18.7772 as of 8:26 a.m. Mexico City time; Bloomberg Dollar Spot Index up 0.3%
- Most other peers were also down Wednesday amid more hawkish sentiment regarding the Fed’s chances of lowering rates; MSCI’s emerging-market currency gauge hit its lowest level since Aug. 1
- “Though there are no major data points in the US or Mexico today, the Q2 GDP reading in the US tomorrow is expected to be slightly higher than the original release,” said Juan Perez, senior
director of trading at Monex USA points out. - “If that happens, “then the buck is more than likely going to rally because the way to interpret the situation is that things are not so ‘stagflation-ish’ and thus there’s no reason to try and be stimulative, particularly when inflation remains something to watch more carefully,” Perez said
- USD/MXN one-month implied volatility is at 8.99%, up from 8.845% on Tuesday
- USD/MXN 200-DMA currently around 19.7424; 100-DMA 19.0987; 50-DMA 18.7453
- WTI crude futures climb 0.6% to $63.64 per barrel
Mexican economic data (All times Mexico City local):
- 06:00: July Revised Trade Balance, actual -16.7m, est. 750m, prior 514.4m
- 06:00: July Exports, actual 56.7b, prior 54b
- 06:00: July Imports, actual 56.7b, prior 53.5b
US economic data (All times Mexico City local):
- 05:00: Aug. MBA Mortgage Applications, actual -0.5%, prior -1.4%
