The Mexican peso rose to 19.3 per USD in May 2025, its strongest level since October of last year, as fiscal concerns and tariff uncertainty in the US weakened the greenback. The dollar declined against major currencies after the US House of Representatives approved a bill that could add more than $3 trillion to their Federal budget deficit, days after Moody's downgraded the rating on their debt due to unsustainable debt. On the domestic front, the latest data showed that the Mexican GDP grew 0.2% in the first quarter. While this avoided a technical recession, it signaled underlying weakness in the Mexican economy and a greater urgency for Banxico to cut interest rates. In its last decision, the central bank delivered a 50bps cut to 8.5%, as expected, to dim the appeal of a Mexican carry trade.

Mexican Peso Hits 7-Month High

Mexico's current account deficit narrowed to $7.61 billion in the first quarter of 2025, down from $22.207 billion registered in the same period of the previous year. The goods account swung to a surplus of $1.029 billion from a deficit of $2.745 billion, while the primary income deficit narrowed, from $32.532 billion to $23.304 billion. On the other hand, services swung to a surplus of $510 million from a $885 million gap, and the secondary income surplus rose from $13.956 billion to $14.153 billion.

Mexico Current Account Deficit Returns In Q1

US equities took a hit on Friday as President Donald Trump reignited trade tensions, targeting both Apple and the European Union with new tariff threats. The S&P 500 and Nasdaq dropped 0.6% and 0.9%, respectively, while the Dow Jones fell 250 points. Apple shares slid over 2%, pushing its market capitalization below the $3 trillion mark, after Trump posted on Truth Social that iPhones sold in the US must be manufactured domestically or face a 25% tariff. He also proposed a sweeping 50% tariff on EU imports starting June 1, citing stalled negotiations, sparking renewed concerns about global trade. The tech sector led losses, with Micron, Qualcomm, and Nvidia all retreating over 1%. These developments hit just as markets were rebounding on hopes of easing trade tensions after a 90-day tariff pause and progress with the UK and China. So far this week, the S&P 500 is down 2%, the Dow has slipped 1.9%, and the Nasdaq is on track for a 1.5% decline.

Wall Street Falls on Trump Tariff Threats

Markets are bracing for another turbulent week, driven by renewed tariff threats from President Trump targeting the European Union and Apple. Investors will also focus on a commentary from Fed officials, as well as the FOMC meeting minutes. Key US economic indicators include personal income and spending, the PCE price indices, durable goods orders, goods trade balance, 2nd estimate of Q1 GDP growth, corporate profits, pending home sales and S&P/Case-Shiller Home Price Index. Globally, monetary policy decisions from South Korea and New Zealand are on tap, while investors will digest inflation figures from France, Spain, Italy, and Germany. Q1 GDP readings from Turkey, India, Brazil, and Canada will also be closely watched. Finally, Germany's GfK consumer confidence is expected as well as Japan industrial production, retail sales, and consumer confidence figures.

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最新ニュース

Mexican Peso Hits 7-Month High

Mexico Current Account Deficit Returns In Q1

Wall Street Falls on Trump Tariff Threats

Week Ahead - May 26th