Sign Up Log in

    In December, Mexico’s annual inflation rate was 3.69%, which was below the expected 3.8%

    by VT Markets
    /
    Jan 8, 2026

    Commodities and Cryptocurrency Market

    Gold prices have fallen to around $4,430. This drop is linked to the strengthening US dollar and higher Treasury yields. In the cryptocurrency world, the Pi Network experienced a nearly 2% decline, trading just above $0.2000, while Centralized Exchanges gained 1.90 million PI tokens. Looking ahead to 2026, it’s important to stay cautious, even if there’s some hope for improvement. Forex traders are advised to choose brokers that cater to different markets and trading styles. This is crucial for making wise investment decisions given possible risks. Remember, this information is for your reference and not financial advice. In December, Mexico’s inflation rate was 3.69%, which is lower than our expected 3.8%. This indicates that the price pressures observed in mid-2025 are easing faster than we thought. Consequently, Mexico’s central bank, Banxico, may consider lowering interest rates in the first quarter of this year. Traders should prepare for a weaker Mexican Peso in the upcoming weeks. The high interest rates in Mexico led to a successful carry trade that boosted the peso through much of 2025, but this trend could soon change. We should look for strategies that benefit from a rising USD/MXN exchange rate, such as buying call options on this pair.

    Interest Rate Futures and Mexican Bonds

    The trend of disinflation is becoming clearer, with the current inflation rate of 3.69% moving closer to Banxico’s 3.0% target. With the central bank keeping its policy rate at a high 10.00%, there is plenty of room for potential cuts. This situation is different from that in the US, where a strong dollar indicates the Federal Reserve might take longer to ease policies, potentially pushing the USD/MXN rate higher. Additionally, traders should expect declining yields on Mexican government bonds. The market will start to price in rate cuts more aggressively as we approach the next policy meetings. This makes interest rate futures that bet on a lower TIIE rate increasingly appealing in the short term. Create your live VT Markets account and start trading now.

    here to set up a live account on VT Markets now

    In This Article

    see more

    Back To Top
    server
    Click Click Click Click Click
    Follow us on

    Hello there 👋

    How can I help you?

    Chat with our team instantly

    Live Chat

    Start a live conversation through...

    • Telegram
      hold On hold
    • Coming Soon...

    Hello there 👋

    How can I help you?

    telegram

    Scan the QR code with your smartphone to start a chat with us, or click here.

    Don’t have the Telegram App or Desktop installed? Use Web Telegram instead.

    QR code