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Mexican peso slips as US Core PCE revives higher-rate bets

USD/MXN was last around 16.95 after falling to 16.92 earlier in the session, amid forecasts of a stalled disinflation trend.

Reported · Written up by our desk · Major Pairs

FXStreet reports the Mexican peso lost some traction versus the US dollar on Wednesday, with traders leaning toward the Federal Reserve staying on a higher-for-longer path after a hotter-than-expected inflation print. USD/MXN was around 16.95 after a daily low near 16.92.

The move followed the US Core PCE inflation report for July coming in line with estimates and matching June’s 3.3% year-over-year reading, while the PCE headline held steady at 3.7% year-over-year for the second month, above forecasts of 3.6%. The data suggested disinflation had stalled, reinforcing expectations for higher US rates.

FXStreet also points to US data and Mexican updates shaping sentiment. It notes that US durable goods orders rose 1.1% in July, beating forecasts and June’s 0.5% increase, and that the Bank of Mexico updated its Q2 2026 forecasts, lifting expected GDP growth to 1.5% from 1.1% and projecting inflation to move more slowly toward its 3% targets.

In technical terms cited by FXStreet, USD/MXN held below key moving averages clustered near 17.3219 and remained under a broader descending resistance line from 18.1651, while the RSI near 31.7 pointed to weakening downside momentum without a confirmed reversal. The next catalysts noted are US Initial Jobless Claims and a Jackson Hole speech by Chair Kevin Warsh.

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