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Mexican Peso recovers as China’s 5% GDP growth for 2024 boosts global sentiment. EU-Mexico trade agreement revival pre-Trump inauguration boosts Peso optimism. IMF and World Bank predict modest Mexican growth in 2025, cite domestic and US political risks. The Mexican Peso (MXN) stages a recovery after weakening to a new yearly low of 20.93 and appreciates against the Greenback due to an improvement in risk appetite following China’s upbeat GDP figures. The USD/MXN trades at 20.72, down 0.38%. During the Asian session, China announced its Gross Domestic Product (GDP) rose by 5% in 2024, meeting the government’s goal for the year. Other data showed that China’s industrial output outpaced retail sales while the unemployment rate increased. Consequently, risk-sensitive currencies like the Mexican Peso rose. The Peso extended its rally following a Reuters report that the European Union (EU) and Mexico revived a stalled free trade agreement on Friday, days ahead of Donald Trump’s inauguration. Meanwhile, the International Monetary Fund (IMF) and the World Bank updated their projections of the Mexican economy. The former estimates a 1.4% growth in 2025, while the latter foresees a slightly optimistic 1.5% increase. Both institutions mentioned that the economy faces risks, such as uncertainty over recently approved reforms and Trump’s return to the White House. Next week, Mexico’s economic docket will feature Retail Sales, mid-month January inflation data and a proxy for GDP, Economic Activity for November. Daily digest market movers: Mexican Peso advances as traders await Trump’s inauguration The Mexican Peso shrugs-off concerns ahead of Trump’s inauguration as the USD/MXN retreats below 20.80. However, the Mexican currency is not out of the woods. The divergence between the Banco de Mexico (Banxico) and the Federal Reserve (Fed) hints that further upside in USD/MXN lies ahead. Economists polled by Reuters revealed that GDP will grow 1.2%…