Mexican finance minister resigns

Daily Analysis - 10/07/2019

Mexican peso drops more than 1%

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On Tuesday the Mexican peso fell versus the greenback following the resignation of Mexico’s finance minister, Carlos Urzua.

The Mexican currency registered a drop of more than 1% and traded at 19.10 per U.S. dollar. The peso fell to its weakest level in 30-days versus the popular U.S. Dollar. According to CNBC In a letter, Urzua stated that

“Disagreements over the economic matter were plentiful,” Some of them were because “this administration has made public policy decision without sufficient foundation.” and added

“I am convinced that all economic policy should be realized based on evidence,”  “However, during my tenure, these convictions were not echoed.”

Gold drops versus the greenback and the EUR


Today the popular safe haven Gold weakened while the greenback got stronger due to expectations that U.S. Federal Reserve testimony will have less dovish tone from its chief Jerome Powell. The minutes from Fed’s prior gathering will be published later today.

The popular Gold also fell versus the EUR and was trading at about 1241.05. Now regarding the dollar basically, it went up to its 21-day top versus its major rival currencies today. The dollar gained a positive momentum due to the weakening expectations of an aggressive U.S. interest rate reduction.

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S&P and NASDAQ registered lower levels


On Wednesday the U.S. stock index futures registered a weaker momentum while investors await the comments from the Fed chief Powell.

The market’s main focus is mostly adjusted to the statement of Federal Reserve Chairman Jerome Powell, with investors eager to see if he is going to verify or not the expectations for a U.S. policy easing this month. Futures on the NASDAQ and S&P are both lower while Dow futures fell about 50 points, registering a negative open.

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Oil up due to a drop in U.S stockpiles


On Wednesday Oil went up directed by an energy group that announced a drop in U.S. stockpiles. Brent rose 61 cents to $64.76, having first touched the $64.94 level. WTI crude went up around 80 cents, to $58.63.

The U.S. and global benchmarks have increased in 2019 while the OPEC and Partners have valued their commitments to lower output.

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