Day: February 19, 2025

Mexican Peso Drops After Fed Minutes

Posted on by Ignacio Teson

The Mexican peso weakened against the U.S. dollar on Wednesday as traders reacted to key economic reports and fresh tariff threats from U.S. President Donald Trump.

The exchange rate closed at 20.4465 pesos per dollar, marking a 0.86% decline from Tuesday’s close of 20.2732, according to official data from the Bank of Mexico (Banxico). The peso lost 17.33 centavos, breaking a six-session winning streak.

[[USD/MXN-graph]]

Inflation, the Fed, and Trump’s Trade Policy

Trump announced plans to impose a 25% tariff on automobiles, as well as similar levies on semiconductors and pharmaceutical imports—moves that could disrupt global trade.

Meanwhile, investors analyzed minutes from the latest Federal Reserve (Fed) meeting, which highlighted concerns over inflationary risks. Fed officials cited potential impacts from trade and immigration policy shifts, geopolitical tensions, and stronger-than-expected consumer spending.

Peso Faces Market Uncertainty

Before Wednesday’s drop, the peso had gained 1.60% over six sessions, strengthening from 20.5979 per dollar on February 10. While the currency has shown resilience, uncertainty over which countries will be affected by Trump’s tariffs could add pressure in the coming days.

Financial markets reflected broader caution, with gold hitting new record highs as investors sought safe-haven assets.

Banxico Lowers Growth Forecast

Locally, markets reacted to Banxico’s quarterly report, in which the central bank halved its 2025 growth forecast, cutting it from 1.2% to 0.6%. The bank warned of moderate economic expansion in the coming years.

Banxico attributed this expected weakness—particularly in the first half of the year—to declining consumption and private investment, citing an environment of “heightened uncertainty” linked to U.S. policy shifts under the new administration.

Fed Minutes: Trump Heightens Inflation Concerns

Posted on by Ignacio Teson

Participants in the Federal Reserve’s January 28-29 meeting generally pointed to upside risks to inflation rather than concerns over the labor market, according to minutes released on Wednesday.

Powell is rethinking rate cuts?
Powell is rethinking rate cuts?

President Donald Trump’s early policy proposals have fueled concerns within the Federal Reserve about rising inflation, central bank officials noted in a meeting held roughly a week after the Republican’s inauguration.

“Participants specifically cited the potential effects of possible changes in trade and immigration policies, the risk of geopolitical events disrupting supply chains, or stronger-than-expected household spending,” the minutes stated.

While officials remain confident that price pressures will continue to ease, the minutes also acknowledged that “other factors could hinder the disinflation process.”

One key concern was that “business contacts across several Fed districts indicated that companies would attempt to pass higher input costs—stemming from potential tariffs—onto consumers.”

Participants also noted that some inflation expectation measures, a critical concern for the Fed, “had recently increased.”

Officials agreed to keep interest rates steady until there was clear evidence that inflation—largely stagnant since mid-2024—was reliably declining toward the central bank’s 2% target.

A Shift in Outlook

Fed policymakers had already adjusted their outlook in the December meeting, anticipating slower growth and higher inflation based on “placeholder assumptions” regarding Trump’s likely actions during his second term.

In his first days in office, Trump began providing details on his policy agenda, including a proposed 25% tariff on Canada and Mexico and a southern border closure.

At its latest meeting, the Fed left its benchmark interest rate unchanged in the 4.25%-4.50% range.

Gold Pulls Back After Hitting Record High Amid Trade War Fears

Posted on by Ignacio Teson

Year-to-date, gold has gained approximately 12% and is now just over 2% away from reaching $3,000.

Gold prices surged to an all-time high on Wednesday as mounting concerns over an imminent trade war and global economic growth fueled safe-haven flows. This followed fresh tariff threats from U.S. President Donald Trump.

[[XAU/USD-graph]]

Spot gold edged down 0.03% to $2,934.39 after reaching a record high of $2,946.75 per ounce earlier in the session. Prices have now set a new record for the ninth time this year. Meanwhile, U.S. gold futures rose 0.06% to $2,950.74.

What’s Driving Gold’s Historic Rally?

Gold’s latest rally appears to be driven by President Trump’s recent remarks on upcoming tariffs on automobiles and pharmaceuticals, potentially paving the way for a push toward $3,000.

Since taking office, Trump has imposed a 10% tariff on Chinese imports and a 25% tariff on steel and aluminum. On Tuesday, he announced plans to introduce tariffs on automobiles, as well as similar levies on semiconductors and pharmaceutical imports.

Bullion is often viewed as a hedge against rising inflation and geopolitical uncertainty. However, higher interest rates tend to diminish the appeal of this non-yielding asset.

Other Precious Metals

Among other metals, spot silver—widely used in electrical components—rose 0.4% to $32.99 per ounce. Platinum, essential for automotive catalysts, fell 0.6% to $981.56, while palladium inched up 0.1% to $987.75.

New Record for S&P 500 Stock Market Index

Posted on by Timothy St. John

US stocks rose on Tuesday slightly, with the S&P 500 making the most significant change, up 0.24% to hit a new record high of 6,129.63 and helping to calm some of the economic fears that have abounded recently.

S&P 500 reached a new high.
S&P 500 is at a new high today.

The Dow Jones and the Nasdaq both inched higher on Tuesday, with very little increase at 0.07% and 0.02%, respectively. The S&P 500, however, moved higher by 0.24% and set a new record. We expected this would happen this week, and the entire stock market is looking healthy at the moment.

That is despite fears looming over a tough inflation rate that does not seem to be improving as well as new tariffs and a lack of interest rate cuts from the Federal Reserve. These issues have led to economic concern, but the stock market is sidestepping these issues to deliver a strong week that is following on the coattails of a positive previous week.

What to Watch This Week

Investors should keep an eye on fast-moving technology stocks, which have proven to be some of the bigger movers and shakers in 2025 already.

Tesla (TSLA) rose 2.28% on Wednesday and could climb higher before the trading stopped for the day. This stock has been rising over the last week but has not recovered to its incredibly high January levels. We do expect that Tesla will continue to do well this year and that its early February sink was just a fluke.

Apple (AAPL) stock has skyrocketed this month and could do even better before we get into March. It looks flat today, but that simply means that the stock is retaining its gains so far. Since February 10th, Apple stock has shot up by 7.4%, and the company has retained its number one spot for market cap on the global market.

On Tuesday, Intel (INTC) stock shot up 16%. That is the best day of trading for this stock since 2020. The stock jump occurred after reports showed that two buyers could be looking to split the company- Broadcom and Taiwan Semiconductor Manufacturing. 

 

MARA Holdings Completes Acquisition of Texas Wind Farm for Bitcoin Mining Operations

Posted on by Sophia Cruz

An important milestone in MARA Holdings’ strategic expansion into renewable energy-powered Bitcoin mining has been reached with the successful completion of the acquisition of a wind farm in Texas. This action demonstrates MARA’s dedication to effective and sustainable bitcoin mining methods. 

 

MARA Holdings Completes Acquisition of Texas Wind Farm for Bitcoin Mining Operations

 

With its significant energy production potential, the Texas wind farm is well-positioned to give MARA Holdings a dependable and environmentally responsible source of power for its mining activities. MARA wants to lessen the negative environmental effects of Bitcoin mining, which has come under fire for its excessive energy use and carbon footprint, by incorporating renewable energy into its infrastructure. 

This acquisition aligns with the growing trend of cryptocurrency mining companies seeking sustainable energy solutions. By leveraging wind power, MARA not only reduces its operational costs but also positions itself as an environmentally responsible leader in the industry. This approach is anticipated to enhance the company’s reputation among stakeholders and investors who prioritize environmental, social, and governance (ESG) considerations.

The strategic location of the wind farm in Texas offers additional advantages. Texas is renowned for its favorable regulatory environment and abundant renewable energy resources, making it an attractive hub for cryptocurrency mining enterprises. MARA’s investment in this region is expected to stimulate local economic growth and job creation, further solidifying the state’s position as a leader in the renewable energy sector.

MARA Holdings’ CEO expressed enthusiasm about the acquisition, stating that integrating renewable energy sources is a pivotal step toward achieving long-term sustainability goals. The company plans to continue exploring additional opportunities to expand its renewable energy portfolio, reinforcing its dedication to environmentally conscious operations.

In summary, the completion of the Texas wind farm acquisition by MARA Holdings represents a proactive move to solve environmental issues related to Bitcoin mining. By utilizing wind energy, the business not only improves operational effectiveness but also makes a constructive contribution to the larger discussion about sustainable practices in the bitcoin sector. A more sustainable future for the production of digital assets is fostered by this breakthrough, which establishes a precedent for other mining businesses to use renewable energy solutions. 

Ethereum Transaction Fees Plummet to $0.41: Implications for Investors

Posted on by Sophia Cruz

Ethereum’s transaction fees have recently declined to $0.41 per transfer, a massive reduction from the $15.21 peak over the past two years. This decrease suggests reduced network congestion, as lower fees typically indicate less on-chain activity. While this might raise concerns about diminished usage, it also presents potential opportunities for investors.

 

Ethereum Transaction Fees Plummet to $0.41: Implications for Investors

 

High transaction fees have historically been linked to high activity and positive price movements as users compete for block space when the market is bullish. The current low fees, on the other hand, might represent a brief lull and provide a more convenient entrance point for new members. Reducing fees lowers entry barriers, which could draw in more users and promote the uptake of Ethereum-based applications. 

In addition to the decline in transaction fees, there has been a notable reduction in Ethereum’s supply on exchanges, with only 6.38% of the total supply currently available for trading

This trend indicates that investors are increasingly moving their holdings to long-term storage solutions, a behavior often interpreted as a bullish signal. The combination of reduced supply on exchanges and lower transaction costs could set the stage for positive price momentum in the medium to long term.

Looking ahead, Ethereum is preparing for its next major upgrade, the Pectra hard fork, which aims to enhance network efficiency and scalability. This development is expected to address critical aspects such as account abstraction and validator operations, potentially improving the overall user experience and attracting more participants to the network.

In conclusion, investors have a strategic opportunity even though the current drop in Ethereum’s transaction fees is a reflection of a period of less network activity. By lowering the barrier to entry, the reduced fees may attract new users and encourage greater interaction with Ethereum’s ecosystem. These elements, along with the impending Pectra upgrade and the continuous decrease in ETH supply on exchanges, should support a positive long-term view for Ethereum’s pricing and uptake.

Bitcoin, Ethereum, and XRP at Risk Amid FTX Payouts and Low Volatility

Posted on by Sophia Cruz

The cryptocurrency market is facing increased uncertainty as Bitcoin, Ethereum, and XRP encounter potential risks due to upcoming FTX payouts and declining volatility. Market analysts warn that these factors could trigger significant price movements, impacting both short-term traders and long-term investors.

 

Bitcoin, Ethereum, and XRP at Risk Amid FTX Payouts and Low Volatility

 

The planned repayment of FTX creditors is one of the main issues, since it may cause an unexpected surge of capital into the market. As creditors sell off assets, this widespread distribution might lead to selling pressure, which might have an impact on the prices of Bitcoin, Ethereum, and XRP. Similar incidents have in the past led to sharp increases in volatility and downward pressure on the main cryptocurrencies. 

Bitcoin’s volatility has hit multi-month lows, which has increased market apprehension and sparked worries about a potential liquidation cascade. As traders realign their positions, abrupt, dramatic moves frequently precede diminishing price volatility. Leveraged holdings may become susceptible to liquidations in a low-volatility market, which could result in abrupt and swift price fluctuations. 

Ethereum and XRP are also under scrutiny, with investors closely watching how these assets react to the broader market conditions. Ethereum’s network activity has shown signs of slowing, while XRP’s price remains sensitive to regulatory developments and market sentiment. Any negative news surrounding the FTX payouts or macroeconomic factors could further impact these digital assets.

Despite these concerns, some market participants view this period as a potential buying opportunity. Reduced volatility and market uncertainty often provide strategic entry points for long-term investors looking to accumulate assets at lower price levels. However, risk management remains crucial, as sudden price movements could lead to unexpected losses.

As the FTX payout date approaches and Bitcoin’s volatility remains at historic lows, traders and investors should stay cautious. The market’s next moves could be decisive, determining whether cryptocurrencies will experience a sharp correction or maintain resilience amid uncertainty.