MXN

A flurry of action after yesterday’s release of the August consumer price report ultimately left currency and fixed-income markets largely unmoved. The dollar is flat and front-end yields are edging up. Measures of implied volatility in the equity and currency markets are plumbing seasonal lows. Both the headline and core price indices accelerated somewhat as Saudi-led output cuts lifted oil prices and transportation services costs, but underlying inflation stayed at levels consistent with the Federal Reserve’s inflation target, keeping policy expectations essentially unchanged. The central bank is still seen staying on hold next week, tightening again in November, and beginning...

Goldilocks is enjoying her just-right porridge this morning after a US payrolls report pointed to a gradual easing in labour market conditions, supporting expectations for an imminent end to the Federal Reserve’s tightening cycle. North America The US economy added 187,000 new non-farm jobs last month, marking the third consecutive month of gains below 200,000, and helping bolster bets on an imminent end to the Federal Reserve’s tightening cycle. According to the Bureau of Labor Statistics, the unemployment rate jumped off historic lows to 3.8 percent in August, up from 3.5 percent in the previous month’s print (but we note that...