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USD/MXN slips below 17.00 as weaker US data trims the Greenback
Retail Sales fell 0.6% month over month and the University of Michigan sentiment index dropped to 51.0, weighing on the US currency and pushing USD/MXN to 24-month lows near 16.97.
The Mexican peso firmed against the US dollar, with USD/MXN refreshing 24-month lows below 17.00 before buyers stepped in and helped the pair recover. FXStreet said USD/MXN was trading around 17.02 after bouncing off daily lows of 16.97.
FXStreet attributed the move to US data that weighed on the Greenback. The outlet cited a disappointing US Retail Sales print, with July Retail Sales contracting 0.6% month over month versus expectations of a 0.1% increase and June’s 0.2% expansion, alongside weaker consumer sentiment, as the University of Michigan’s preliminary August index fell from 55.2 to 51.0.
The same report pointed to softer inflation and signs of labor market “some” cooling, noting US consumer and producer price figures edged lower and that Nonfarm Payrolls on August 7 and jobless claims on August 13 suggested only partial softening. FXStreet said that backdrop prompted a more aggressive repricing of Fed rate hike expectations for 2026.
Looking ahead, FXStreet said Mexico investors are focused on the Bank of Mexico’s last meeting minutes and Mexico’s economic calendar, while the US schedule next week includes housing data, jobless claims, an ADP employment measure, and Flash PMIs. The outlet also flagged technical levels, noting the pair is still capped by descending resistance near 17.4197.