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\n Share:<\/span><\/p>\n USD\/MXN clings to its gains after the Bank of Mexico’s (Banxico) decision to hold rates unchanged at 11.25% failed to boost the USD\/MXN towards the 20-day EMA and printed a weekly high of 17.2644. Since then, the USD\/MXN retreated, but it remains up 0.13% in the middle of the day. risk aversion<\/a>, At the time of writing, the USD\/MXN exchanges hands at 17.1880.<\/p>\n United States equities<\/a> are trading with losses as market participants’ sentiment shifted sour. Global recession fears reignited after the release of business activity data across Europe and the US, with PMIs remaining in expansionary territory but continuing to slow down.<\/p>\n Data in the United States (US) showed that the S&P Global Manufacturing pmi<\/a> continued to slide, coming in at 46.3, lower than May’s 48.4, while the Services stood at 54.1, above forecasts, but trailed the prior month’s data. Hence, the Composite Index slowed to 53 from 54.3 in May.<\/p>\n On the data, S&P Global Market Intelligence Chief Economist Chris Williamson said, “The overall rate of expansion of business activity in the US remained robust in June, consistent with GDP rising at a rate of 1.7% to put second-quarter growth in the region.” of 2%.\u201d<\/p>\n Meanwhile, the US dollar index<\/a>which measures the buck’s value against a basket of six currencies, climbed 0.54%, up at 102.944, finding a bid amid falling US Treasury bond yields.<\/p>\n Money market futures depict odds at a 74.4% chance for a 25 bps rate hike in July, according to CME FedWath Tool data, but traders do not expect the Fed to lift rates past the 5.25%-5.50% threshold.<\/p>\n Across the border, Banxico kept rates unchanged at 11.25% on Thursday, signaling that it would keep them high “for an extended period, as inflation slowed down to 5.18% in the first half f une, below estimates of 5.30%, according to data From INEGI.<\/p>\n Analysts at Goldman Sachs expect the Mexican bank to hold rates unchanged and foresee a rate cut toward the end of 2023.<\/p>\n\n
Risk aversion dominates as business activity slows globally; USD\/MXN holds firm<\/h2>\n