Anticipation Grows for Mexico’s Retail Sales Data Amidst Economic Fluctuations
- Shams Ul Zoha
- July 20, 2023
- 12:06 pm
WHAT YOU SHOULD KNOW
- Mexico’s retail sales in April 2023 displayed remarkable resilience, with a 3.8% increase compared to the corresponding period in the previous year, surpassing market expectations.
- Key sectors that contributed to the growth included textiles, clothing, accessories, healthcare products, department stores, online retail, and groceries, while some sectors experienced declines, such as hardware and glass goods, household appliances and computers, and auto vehicles and motor trades.
- Technical analysis indicates that the price action has reached the 100% extension on the Weekly chart, with potential downward pressure remaining.
The retail sales data for Mexico is highly anticipated as the country’s market has experienced significant fluctuations throughout the year. Experts predict that the upcoming report will show a decrease compared to the previous month’s figures. However, in April 2023, retail sales in Mexico demonstrated resilience, with a remarkable 3.8% increase from the same period in the previous year, surpassing market expectations. The growth was driven by robust consumer activity in key sectors, including textiles, clothing, accessories, healthcare products, department stores, online retail, and groceries, despite facing higher interest rates imposed by Banxico. Some sectors experienced declines, such as hardware, glass goods, household appliances, computers, and auto vehicles.
From a technical standpoint, the price action on the Weekly chart has reached the 100% extension, with a bounce off a 38.2% retracement. Although some downward pressure may still persist, it appears that the majority of the downward movement has occurred, particularly as it seems to be in the 3rd leg of its down draft. Additionally, with the FOMC expected to hike rates in the upcoming week, there may be potential for a spike in the dollar.
Investors are closely watching the retail sales data, as it can provide valuable insights into the state of the Mexican economy amidst changing interest rates and global economic conditions. Market movements are likely to be influenced by these crucial figures, shaping investors’ outlook on the Mexican market.
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