Rate cut from the Mexico central bank of 25 basis points
The Mexico central banks cut the overnight rate to 7.5% from 7.75%. This was as expected
- 2 members did vote for a 50 basis point cut
- sees 2019, 2020 growth lower than previously forecast
- reiterates prudent monetary position
- balance of risks to growth still bias toward downside
- risks remain CPI could deviate from forecasts
- core inflation has been persistently high
- CPI may be slightly below previous forecasts
The USDMXN has been trading above and below its 100 day moving average over the last 2 trading days after trading below the level since October 11. The 100 day moving average currently comes in at 19.4003. The current price is trading just below that level at 19.3811
