Mexican Peso holds Steady As Consumer Confidence Improves But Fiscal Risks Linger
(MENAFN- Your Mind Media ) The Mexican peso traded flat against the US dollar on Wednesday as investors digested a mix of domestic signals. August’s consumer confidence index rose for a third consecutive month, reaching 46.7. While still below the 50-threshold, the improvement offers some relief for the peso after months of subdued readings.
The S&P Global Manufacturing PMI also surprised to the upside, climbing to 50.2, its first expansionary reading in over a year, driven by a recovery in new orders. This may reflect early signs of industrial stabilization.
On the fiscal front, the budget balance deteriorated for a third consecutive month, reinforcing concerns over public finances, which could weigh on the currency. Meanwhile, all eyes are on the visit of US Secretary of State Marco Rubio, who arrived in Mexico for high-level talks focused on trade, security and migration. Any positive outcomes may offer near-term support for the peso.
Looking ahead, all eyes are now on tomorr’w’s gross fixed investment data. Should the figures match market expectations of a decline to 0%, it would signal investor caution toward Me’ico’s growth outlook. A further slowdown in capital formation could weigh on the peso by reinforcing concerns over long-term economic momentum.”
The S&P Global Manufacturing PMI also surprised to the upside, climbing to 50.2, its first expansionary reading in over a year, driven by a recovery in new orders. This may reflect early signs of industrial stabilization.
On the fiscal front, the budget balance deteriorated for a third consecutive month, reinforcing concerns over public finances, which could weigh on the currency. Meanwhile, all eyes are on the visit of US Secretary of State Marco Rubio, who arrived in Mexico for high-level talks focused on trade, security and migration. Any positive outcomes may offer near-term support for the peso.
Looking ahead, all eyes are now on tomorr’w’s gross fixed investment data. Should the figures match market expectations of a decline to 0%, it would signal investor caution toward Me’ico’s growth outlook. A further slowdown in capital formation could weigh on the peso by reinforcing concerns over long-term economic momentum.”
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