MXN

The dollar is steadying, Treasury yields are moving sideways, and equity futures are down after Monday’s session brought new evidence of the growing headwinds facing the US economy – raising hopes for earlier policy easing from the Federal Reserve while also challenging earnings expectations. Yesterday’s Institute for Supply Management manufacturing survey proved disappointing. The factory sector remained in negative territory, with the headline index unexpectedly declining to 48.7, down from 49.2 in the prior month, and well below the 50 threshold that separates expansion from contraction. Most worrisomely, the new orders sub-index fell below inventories, suggesting that businesses could slow...

Markets are on edge ahead of a week littered with event risks. The dollar is strengthening and Treasury yields are down as traders brace for politically-driven volatility in the Mexican peso, decisions from the Bank of Canada and European Central Bank, and a series of first-tier data releases in the United States, culminating in Friday’s non-farm payrolls report. The peso is coming down hard as preliminary results show Claudia Sheinbaum, current President Andrés Manuel López Obrador’s designated successor, on course to win a landslide victory that could give her party the votes needed to remove checks and balances in the...