Mexican Peso steadies ahead of US PCE data, presidential election

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Mexican Peso steadies ahead of US PCE data, presidential election
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The Mexican Peso (MXN) trades mixed in its most heavily traded pairs on Friday as market sentiment stabilizes ahead of key event risk.

The Mexican Peso is trading little changed on Friday as investors await key event risk on the horizon. Friday sees the release of US PCE inflation data, and Mexico will vote for a new President on Sunday. USD/MXN pulls back within a strong short-term uptrend. The Mexican Peso trades mixed in its most heavily traded pairs on Friday as market sentiment stabilizes ahead of key event risk.

Her tenure is likely to see an extension of Obrador’s generous welfare programme, and she has pledged to increase the minimum wage by circa 11%. This is likely to boost consumer spending, a key driver of growth in recent quarters, but could make it difficult for Banxico to bring down inflation, says Kimberley Sperrfechter, Emerging Markets Economist at Capital Economics.

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