The Mexican Peso appreciates by about 0.32% on the day against the US Dollar, but it remains poised to end the week with losses of more than 1% even as risk appetite soured amid a potential escalation of the Middle East conflict. The USD/MXN trades at 18.66, after hitting 18.80.
TD Securities’ macro team, led by Andrew Kelvin and Robert Both, does not share market conviction for an October Bank of Canada rate hike. They expect the BoC to hold at 2.25% now, then deliver 25bp increases in December and January, taking policy to the midpoint of its neutral range while monitoring inflation breadth, growth data and the impact of new tariffs.
The US Dollar (USD) is trimming losses against the Swiss Franc (CHF) on Friday, as the risk-off mood, stemming from surging Oil prices, has offset the negative impact of falling US Treasury yields.