MNI China Daily Summary: Thursday, July 4

MNI BRIEF: China Has Four Months To Negotiate EU EV Agreement

RPT-MNI INTERVIEW: ISM Choppiness Not A Clear Signal For Worry

MNI: PBOC Net Drains CNY98 Bln Via OMO Thurs; Rates Unchanged

MNI: PBOC Sets Yuan Parity Lower At 7.1305 Thurs; -0.79% Y/Y

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS THURS

DMP survey increases probability of August cut

MNI: UK JUNE CONSTRUCTION PMI 52.2 (FCST: 54.0); MAY 54.7

MNI: EUROZONE JUNE CONSTRUCTION PMI 41.8; MAY 42.9

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Weak Q4 GDP Data Opens Door For March Interest Rate Cut

MEXICO
  • Q4 GDP data disappointed earlier, with the economy growing by a smaller-than-expected 0.1% q/q last quarter, vs. +0.3% consensus and +1.1% prior. In annual terms, this brought GDP growth down to 2.4% y/y, from 3.3%, the weakest pace since Q421. The slowdown in growth in Q4 was broad based and it opens the door for Banxico to potentially adopt a more dovish stance at its Feb 8th monetary policy meeting.
  • CIBC notes that today’s data were below central bank estimates. As a result, this should provide the Banxico with enough room to explicitly signal a rate cut in its March meeting as the ex-ante real rate moves further into restrictive territory. CIBC expect USDMXN to resume its upward path back to the 17.35-17.40 range in the short term.
  • USDMXN is trading little changed so far today, and despite a brief pop to 17.2572 in the aftermath of the GDP data, spot has been contained within Monday’s extremes. With the pair remaining below the 17.3860 Jan high, overall technical conditions remain bearish for now. Initial support to watch lies at 17.0566, the Jan 22 low.
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

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.