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Mexican Peso firms, with USD/MXN near June 2024 levels

USD/MXN was trading around 17.08 as markets awaited US July CPI, where headline inflation is expected to edge down to 3.4% year over year.

Reported · Written up by our desk · Major Pairs

The Mexican peso strengthened against the US dollar, with the USD/MXN pair last seen around 17.08, a level previously reached in June 2024, as the currency was set to finish Tuesday up 0.32%.

FXStreet reported the move came as Mexico’s June industrial output improved, with the month shifting from a prior 0.8% contraction to a 0.2% gain, and with the 12-month reading rising 1.7% versus May’s -0.7% print.

Traders, however, held back from pushing the pair past 17.00 ahead of the US July inflation release. FXStreet said expectations call for headline CPI to ease to 3.4% year over year from 3.5%, with core inflation forecast to slow to 2.5% from 2.6%.

Ahead of the data, FXStreet also cited a Citi Mexico expectations survey in which analysts expect the Bank of Mexico to keep its policy rate unchanged at 6.50% by year end, with a median forecast pointing to USD/MXN closing 2024 at 17.90.

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