MXN

Defying market expectations yet again, the greenback is trampling everything in its path as it heads toward a second week of gains. With global central banks on a synchronous easing trajectory, turbulence in China weighing on currencies across Asia, and US equity markets marching to new highs, rate differentials and global capital flows remain clearly dollar-supportive. Mexico’s peso is retracing some of its earlier losses, but remains weaker after the Banco de Mexico delivered a widely expected rate cut, and said it would take a data-dependent approach to future decisions. Voting by a 4-to-1 margin, policymakers yesterday opted to lower...

Currency markets are retreating in the face of yet another dollar onslaught after Jerome Powell again warned markets not to expect a rate cut at the Federal Reserve’s March meeting, adding to Friday’s hotter-than-expected non-farm payrolls report in driving yields higher. Ten-year Treasury yields jumped almost 7 basis points higher and odds on a May rate cut fell to 70 percent when Chair Powell doubled down on comments made during last week’s post-decision press conference in an interview with CBS News ‘60 Minutes’ programme. In the appearance, aired last night, Powell warned that it was unlikely officials would reach the...