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Mexican peso steadies near 17.14 as traders eye US inflation

USD/MXN was last around 17.14, with the dollar index higher after last week’s job data and ahead of Wednesday’s US consumer and producer inflation releases.

Reported · Written up by our desk · Major Pairs

The Mexican peso (MXN) lost some ground against the US dollar on Monday, with USD/MXN trading around 17.14, up 0.05% as traders booked profits following a weaker-than-expected US jobs report last week.

FXStreet notes that the dollar had been pressured earlier by intervention in FX markets by US and Japanese authorities aimed at supporting the yen, but that move has started to fade as the US Dollar Index rose more than 0.20%. The DXY was around 99.80 after hitting two-month lows near 99.40.

Attention is shifting to the release of US inflation data on Wednesday, both consumer and producer measures, which could signal whether disinflation is resuming unless the Federal Reserve opts for rate hikes. Traders are also watching Initial Jobless Claims on Thursday for additional signs about the labor market.

On the Mexico side, Mexico’s inflation edged toward the Bank of Mexico’s 3% plus or minus 1% goal, according to INEGI. Banxico held rates unchanged unanimously on August 6, and analysts in a Citi Mexico expectations survey expect its main policy rate to stay at 6.50% through year-end, with a median call for USD/MXN to end 2024 at 17.90.

Latest closeDollar index 99.98 ▲0.3%

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