Mexican Peso Falls as Market Awaits Central Bank Decisions
Reuters.- The Mexican peso experienced a decline for the second consecutive day on Friday, following its recent peak in April 2016. Investors are eagerly awaiting new data that will provide insights into the future direction of interest rates, particularly in light of the decisions made by various central banks, including the Federal Reserve.
The peso is currently trading at 17.1462 per dollar, reflecting a 0.24% depreciation compared to Thursday’s reference price provided by Reuters. Despite this setback, the currency has still managed to achieve a weekly return of 0.76%. Analysts are optimistic about its short-term prospects and anticipate further strengthening.
Positive Outlook for the Mexican Peso
“The exchange rate is exhibiting a sideways pattern, indicating a consolidation phase within a range of 17.10 to 17.20 pesos per dollar. The market eagerly awaits significant economic data that will sustain the downward trend of the peso,” stated Banco Base in an analysis note.
Today, the University of Michigan is set to release its preliminary reading of the consumer confidence index for May, which will provide further insights into the state of the economy.
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