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The Mexican peso showed resilience in the Asian session today, trading near 17.2000 against the US dollar, which found itself under pressure despite an index position of 103.60. The greenback's challenges come in the wake of Tuesday's Federal Open Market Committee (FOMC) meeting minutes, which suggested further interest rate hikes could be on the horizon if inflation targets are not met.
Investors are closely monitoring a slate of economic data releases and central bank communications for clues on future monetary policy. In Mexico, retail sales figures set to be released today are expected to show growth, while Thursday's inflation data is anticipated to reveal a slight increase in the overall Consumer Price Index (CPI) but a decrease in the core CPI. These reports follow the Bank of Mexico's (Banxico) recent decision to hold interest rates steady, a move that will be further explained in the upcoming release of detailed minutes, including any language adjustments that may hint at the duration of current monetary policies.
In the United States, market participants await the release of weekly jobless claims and consumer sentiment surveys due today, which could provide additional guidance on the health of the economy. The US Treasury yields have seen an increase, with the 10-year note hitting 4.41% and the 2-year note reaching 4.88%, reflecting market expectations for future interest rate movements.
Mexico's economic growth is also under scrutiny as estimates suggest a 2.9% expansion year-over-year in October. This performance is likely to influence future policy decisions by Banxico and could impact currency and market dynamics in the region.
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