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Mexican peso rises as traders await Banxico’s interest rate decision

USD/MXN was last around 17.32, after Mexico’s Q2 GDP grew 1.5% QoQ following a -0.6% contraction in Q1.

Reported · Written up by our desk · Major Pairs

The Mexican peso strengthened against the US dollar on Monday, helped by improved risk appetite that boosts demand for carry-trade currencies, FXStreet reported. USD/MXN last traded near 17.32, down 0.14% on the day.

Markets are now focused on the Bank of Mexico, with its interest rate decision due late this week on August 6, FXStreet said. Traders were also set to watch Mexico’s consumer confidence data on August 4.

The backdrop for Mexico includes a preliminary read on Q2 activity showing GDP growth of 1.5% QoQ, after a -0.6% contraction in Q1 2026, according to the National Statistics agency as cited by FXStreet. Moody’s Analytics attributed the recovery largely to household consumption and welfare social programs.

FXStreet added that Prime Terminal data showed an 88% chance Banxico holds the policy rate at 6.50%, while a 12% chance implies a hike at the next meeting. The newsletter upgrade

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