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Mexican peso gains as US Iran talks lift hopes for Hormuz reopening
USD/MXN was last near 17.26 after hitting 17.33, while markets also priced a 93.0% chance of Mexico rates staying at 6.5% on Aug. 6.
The Mexican peso strengthened to a one-month high as speculation grew that US and Iran negotiations could reopen the Strait of Hormuz, a development traders link to easing global inflation pressures through freer ship traffic, FXStreet reports. The move has also been supported by the interest rate differential versus the US and Mexico.
At the time of writing, the USD/MXN pair traded around 17.26, after reaching 17.33 earlier in the session, according to FXStreet. The article also cites remarks by US Treasury Secretary Scott Bessent and US Secretary of State Marco Rubio that a possible interim Iran deal could be reached as soon as the current day or tomorrow.
Mexico’s data showed June consumer confidence improved for a second straight month on a monthly basis, though it fell year over year for a nineteenth consecutive month, FXStreet reports. The focus then turns to the Bank of Mexico’s interest rate decision on Aug. 6, where Prime Terminal data shows a 93.0% probability rates will remain at 6.5%.
On the US side, FXStreet reports JOLTS vacancies for June declined from 7.537 million to 7.359 million, below the forecast of 7.4 million, pointing to comparatively steady labor market conditions. The piece also notes that US employment and jobs data are scheduled for Friday, Aug. 7, including ADP Employment Change, job openings, jobless claims, and the July Nonfarm Payrolls report.