Today, the Mexican central bank (Banxico) is widely expected to cut interest rates by a further 50 basis points to 8%. In a Bloomberg survey, only two economists predict a smaller cut of 25 basis points.
The Pound has reversed Tuesday’s pullback and resumed its broader bullish trend on Wednesday, fuelled by the ongoing risk appetite. The Yen is trading lower across the board in the aftermath of the ceasefire in the Middle East, with the Bank of Japan divided about further monetary tightening
The Japanese yen (JPY) is strengthening sharply, climbing 0.8% against the US Dollar (USD) and outperforming most G10 currencies, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.