Mexican Peso Futures Market News and Commentary
The dollar index (DXY00) on Tuesday rose by +0.448 (+0.46%). Sep euro-fx futures (E6U9) closed lower by -0.0062 (-0.55%) and EUR/USD (^EURUSD) fell -0.0062 (-0.55%). Sep yen futures (J6U9) closed down -0.00355 (-0.38%) and USD/JPY (^USDJPY) rose +0.373 (+0.35%). The dollar index rallied on Tuesday on an improved U.S. economic outlook after Congress and the White House reached a budget/debt limit deal late Monday and after Bloomberg on Tuesday afternoon reported that the U.S. and China will hold a face-to-face trade meeting early next week. The dollar was able to shake off weak U.S. economic news early Tuesday with weaker-than-expected reports for U.S. home sales, home prices, and the Richmond Fed index. EUR/USD on Tuesday closed moderately lower by -0.55% as the markets look ahead to Thursday's ECB meeting where the ECB is expected to soften its language to signal a rate cut at the next meeting in September. GBP/USD fell by -0.30% on Tuesday after Brexit-hardliner Boris Johnson was named as the new Conservative Party leader, as expected. Mr. Johnson will take power as the new Prime Minister on Wednesday and is expected to deliver a speech to Parliament on Thursday laying out his Brexit plans. Mr. Johnson has said the UK will leave the EU with or without a withdrawal deal by the October 31 deadline. GBP/USD also saw weakness on Tuesday after the CBI report suggested a weakening UK economy in response to Brexit uncertainty and weak global economic growth. The UK's July CBI Trends Total Orders index fell sharply by 19 points to -34 from June's -15, which was much weaker than market expectations of unchanged at -15. The July CBI business optimism index fell sharply by -19 points to -32 from June's -13 and was much weaker than expectations for a 7 point decline to -20.