Mexico’s central bank was divided in its decision to keep the key interest rate at a decade high Thursday, with one board member voting for a quarter-point cut as the economy sputters.
There’s a consensus building that the U.S. will join central banks from Chile to Australia and cut rates next month amid prospects of slower global growth, and while analysts have been expecting no change from Mexico through year-end, the board may be preparing the way for an eventual reduction, said Alberto Ramos, the chief Latin America economist at Goldman Sachs Group Inc.
"We still believe interest rate cuts this year are likely, but expect policy makers to wait until inflation is lower before moving," said Felipe Hernandez, a Latin America economist at Bloomberg Economics.
Monthly Chart (Curve Time Frame) - monthly supply is at 0.05600 and monthly demand is at 0.04600.
Weekly Chart (Trend Time Frame) – price also broke the weekly up trendline.
Daily Chart (Entry Time Frame) – no trade set-up at the moment. The chart suggests to play the extremes at the daily supply and demand levels.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.