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Mexican peso steadies near two-year lows as US inflation nears
USD/MXN was last at 16.89, down 0.1%, after Mexico’s 2027 budget targets a 3.9% of GDP deficit and smaller PEMEX support.
The Mexican peso held firm against the US dollar on Wednesday, with USD/MXN trading around 16.89, down 0.09%, near yearly lows as traders looked ahead to upcoming US inflation data, according to FXStreet.
Mexico’s government fiscal package, presented in Congress, includes projections for a 2027 deficit of 3.9% of GDP, versus 4.1% of GDP estimated for this year, and it also trims support for Petroleos Mexicanos, PEMEX, toward a projected surplus for 2027.
The proposal forecasts economic growth of 1% to 2% and a primary fiscal surplus of 0.6% of GDP next year excluding debt payments, while it seeks to reduce PEMEX debt-payment support to about $4.8 billion, nearly 70% lower than the current year’s allocation.
Mexico’s National Statistics Agency also reported annual inflation for August rising to 3.26%, below the 3.30% estimate, and core inflation at 3.88%, while in the United States investors are focused on the Bureau of Labor Statistics release of PPI and CPI for August. FXStreet notes that a hotter US inflation print could revive expectations for tighter Federal Reserve policy at the September 15 to 16 meeting, which could strengthen the dollar versus the peso.