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Mexican peso weakens as Fed remarks revive hawkish rate bets
USD/MXN jumped to around 17.04 after Kevin Warsh emphasized inflation as the Fed’s main priority, while US data included a weaker University of Michigan Consumer Sentiment reading and a negative nonfarm payrolls annual revision.
The Mexican peso fell against the US dollar on Friday, with USD/MXN down more than 0.42% as markets reacted to hawkish remarks from Federal Reserve Chair Kevin Warsh at the Jackson Hole Symposium, shifting expectations toward higher US rates.
FXStreet said the pair traded around 17.04 after bouncing from daily lows near 16.94, and it reclaimed the 17.00 level as the broader US dollar strengthened. The outlet noted Warsh’s comments that the Fed would become more “quiet,” while inflation remained the central focus because underlying inflation had not improved.
The move came alongside mixed US labor and sentiment signals. According to FXStreet, the University of Michigan Consumer Sentiment for August deteriorated, while the Nonfarm Payrolls Annual Revision came in at negative 79,000 versus a forecast for 183,000, improving from the prior revision of negative 911,000.
In Mexico, FXStreet reported the unemployment rate was unchanged at 2.9% in July, below forecasts of 3%, and the trade balance posted a $0.465 billion surplus, below June’s $3.752 billion increase. The next reported catalysts include Mexico’s fiscal balance on August 31 and consumer confidence on September 3, followed by US releases such as ISM PMIs and the Fed’s Beige Book.