Daily digest market movers Mexican Peso falls as bets for Banxico rate cuts increased

Mexico’s mid-month inflation rate eased in early November, increasing bets that Banxico would ease policy.

Headline inflation hit 4.56% YoY, down from 4.69% in the previous month, after rising in the previous pair of two-week periods. Economists expected inflation to remain unchanged, according to a Reuters poll.

Core inflation, usually seen as a better gauge of price trends because it strips out volatile energy and food prices, came in below the forecast of 3.72% at 3.58% YoY.

Mexico's GDP for the third quarter of 2024 expanded by 1.1% in the third quarter compared to Q2 and is almost in line with the 1.0% increase expected by economists.

In annual terms, the economy expanded by 1.6% compared to a year earlier, slower than the previous reading and slightly above the 1.5% foreseen by economists.

US S&P Global Services and Composite PMIs for November expanded by 57.0 and 55.3, exceeding the previous month's reading; the Manufacturing PMI improved from 48.5 to 48.8, as expected.

The UoM Consumer Sentiment in November improved from 70.5 to 71.8 but missed the mark. Inflation expectations for one year dipped from 2.7% to 2.6% as projected.