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Mexican peso slips as USD/MXN regains 17 level amid risk

USD/MXN trades around 17.03 after US CPI and retail sales softened expectations for a September Fed rate hike, while Middle East uncertainty adds pressure to the peso.

Reported · Written up by our desk · Major Pairs

The Mexican peso weakened against the US dollar on Monday, with USD/MXN reclaiming the 17.00 level and last trading around 17.03, extending a break from a four-day losing streak, according to FXStreet.

FXStreet attributed the move to softer-than-expected US data that undercut expectations for the Federal Reserve to raise rates at its September meeting. US CPI for July rose 3.4% year over year, down from 3.5% in June, and US PPI slowed from 5.5% to 4.7%, while retail sales fell from 0.2% to -0.6%, contributing to moves in the US dollar index.

FXStreet also pointed to geopolitical uncertainty related to the Middle East as a potential factor weighing on the Mexican currency. It said investors were looking ahead to upcoming Bank of Mexico meeting minutes on August 20 and a return to Mexican data with June retail sales expected later this week.

The article further noted that technical levels suggest a near-term bearish bias, with USD/MXN remaining below moving-average resistance around 17.37 and with the RSI (14) near 30 indicating the pair may be approaching oversold conditions but has not yet shown a decisive recovery in momentum.

Latest closeDollar index 101.29 ▲0.2%

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