Daily digest market movers: Mexican Peso shrugs off US election woes

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  • The USD/MXN remains adrift from political turmoil in Mexico after the approval of the controversial judiciary reform.
  • Mexico’s Gross Fixed Investment (GFI) plunged -1.9% MoM in August, down from July’s 1.8% expansion. On an annual basis, investment dropped -1.9% for the same period, slumped from 6.4%.
  • On November 7, Mexico’s Inflation Rate for October is expected to rise from 4.58% YoY to 4.72% YoY. The core Inflation Rate for the same period is estimated to dip from 3.91% to 3.86%.
  • The US Census Bureau announced that US Factory Orders in September shrank -0.5% more than expected at -0.4% yet improved compared to August’s -0.8% fall.
  • Even though last week’s US Nonfarm Payrolls report was dismal, traders remain skeptical the Federal Reserve would cut rates by more than 25 basis points.
  • The Federal Open Market Committee (FOMC) is expected to cut rates by 25 bps on November 7.
  • Data from the Chicago Board of Trade, via the December fed funds rate futures contract, shows investors estimate 50 bps of Fed easing by the end of the year.

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