Daily digest market movers: Mexican Peso falls, awaiting next week’s data

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  • According to different banks and rating agencies, the impact of overhauling the judicial system remains far from being felt. The lack of a state of law and transparency could be factors in adjusting Mexico’s creditworthiness over the longer term.
  • On Wednesday, the Fed cut rates by 50 bps, justifying its decision on the progress on inflation, which is sustainably moving toward its 2% goal. The US central bank focus shifted onto the labor market.
  • The Fed expects inflation to condense to 2.6% in 2024, 2.2% in 2025, and 2% by 2026, according to the Core Personal Consumption Expenditures Price Index.
  • Fed officials estimate the US economy will grow at a 2% pace in 2024, with the Unemployment Rate rising to 4.4% by the end of the year.
  • December 2024 fed funds rate futures contracting suggests that the Fed might lower rates by at least 53 basis points, implying that in the following two meetings, the market expects two 25 bps rate cuts left in 2024.


 


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