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Mexican peso extends nine-day gains as dollar softens
USD/MXN was at 17.24, down 0.10%, ahead of US Nonfarm Payrolls and amid expectations Banxico will hold its 6.50% rate on Aug. 6.
The Mexican peso extended its streak of gains for a ninth straight day, with the US dollar staying under pressure as investors weighed softer-than-expected US labor data before Friday's Nonfarm Payrolls release. FXStreet said USD/MXN was trading around 17.24, down 0.10%.
FXStreet also linked the broader risk backdrop to renewed developments in the Middle East, citing reporting that an Oman and Iran agreement could be announced as early as Wednesday night, including a temporary 60-day arrangement around the Strait of Hormuz and a potential extension and renewal of the US and Iran ceasefire.
In Mexico, a Reuters poll cited by FXStreet pointed to expectations that the Bank of Mexico will keep rates unchanged at 6.50% at its Aug. 6 meeting. The article noted improving consumer confidence in June and pointed to upcoming inflation data.
On the US side, FXStreet referenced services activity that came in below estimates but improved, alongside inflation measures in the ISM Services PMI that edged higher. It also cited ADP private hiring slowing in July and highlighted Fed comments from multiple officials, while markets focus on whether Nonfarm Payrolls land near an 80K jobs forecast with unemployment around 4.2%.