MXN

A sense of cautious optimism is settling over global markets this morning after payroll revisions and Federal Reserve minutes helped recalibrate expectations for the central bank’s policy actions this autumn. Trading ranges are narrowing across fixed-income, equity, and foreign exchange markets, with most major currency pairs moving sideways as participants avoid taking directional positions ahead of tomorrow’s appearance from Fed Chair Jerome Powell at the Jackson Hole economic symposium. The Bureau of Labor Statistics yesterday said the number of jobs created in the year through March was significantly less than initially believed. Revisions subtracted 818,000 jobs from total payrolls over...

Investors are struggling to restrain themselves ahead of consumer inflation data that is expected to help clear the way for a jumbo-sized rate cut from the Federal Reserve in September. Treasury yields are sliding, equity indices are setting up for a positive open, and risk proxies like the Canadian dollar are advancing as market participants double down on a soft landing scenario in the US. The trade-weighted dollar is down roughly half a percentage point from Monday’s level after producer prices rose by less than forecast in July, pointing to a continued easing in underlying inflation pressures. The core producer...