Daily digest market movers: Uptick in Banxico rate cut bets push Peso to six-week highs

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  • Mexico’s inflation print due on Thursday is expected to print a continued decline in Mexican price growth, forecast to print at 0.12% for February versus the previous 0.89%.
  • January’s 0.89% Mexico inflation print was a 22-month high.
  • This week’s US labor figures kick off with Wednesday’s ADP Employment Change for February, forecast to jump to 150K from the previous 107K.
  • Fed Chairman Jerome Powell due to testify before the Financial Services Committee about the Semi-Annual Monetary Policy Report on Wednesday and Thursday.
  • Friday’s February US NFP is expected to fall back to 200K from the previous 353K, and investors will be keeping a close eye on revisions to previous prints.
  • Tuesday will kick off the US weekly data docket with ISM Services Purchasing Managers Index (PMI) figures for February forecast to tick down to 53.0 from 53.4.
  • The Mexican Peso typically finds bullish interest heading into the second quarter, according to the Moore Research Center (MRCI).
  • MRCI: Mexican Peso has closed higher from February 28 to April 4 about 93% of the time over the past 15 years

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