Free Trial

Strong Earthquake Hits Acapulco, MXN Remains Resilient Amid USD Strength

MEXICO
  • USDMXN had a small squeeze higher in early trade on Wednesday, likely playing catch up to the stronger dollar but also amid reports of a powerful earthquake striking Mexico's Acapulco late on Tuesday, killing at least one man and damaging buildings including the control tower at the beach resort's international airport.
    • The 7.0 magnitude quake, which hit 11 miles (17.7 km) northeast of Acapulco in southwestern Guerrero state, downed trees in hillsides around the holiday getaway. In the airport tower, windows were broken and interior ceilings crashed to the floor, images on social media showed. (National Post.
  • Peso resilience remains evident though with a steady reversal back towards 19.90 for USDMXN and close to unchanged for the week. August CPI data tomorrow remains the domestic focus.
  • Late yesterday, the Citi survey showed:
    • Mexico analysts see 2021 CPI at 6.00 % from 6.05%
    • 2022 year-end inflation was held at 3.78%
    • Analysts also raised 2021 GDP Est. to 6.20% Vs. 6.10%
  • Today, Finance Minister Rogelio Ramirez de la O to present 2022 budget to lower house lawmakers at 1pm. Deputy Minister Victoria Rodriguez Ceja will deliver the document to the senate at 6:30pm, Mexico City time.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.