Mexican Peso refreshes multi-month highs, Banxico minutes eyed
USD/MXN refreshed 24-month lows below 17.00 on Friday, but it has recovered some ground, with buyers stepping in and reclaiming the 17.00 level. Data from the United States (US) weighed on the Greenback, as consumer sentiment and Retail Sales deteriorated.
The Mexican Peso has climbed to multi-month highs, following minutes from the Bank of Mexico (Banxico). USD/MXN traded at 17.02, after bouncing off daily lows of 16.97. US economic data released on Friday showed declines in consumer and producer prices, while retail sales and the Nonfarm Payrolls reading suggested some softening in the labor market.
However, Federal Reserve officials showed no signs of tilting towards concerns of labor market risks. Mexican Economy Secretary Marcelo Ebrard urged the US to reduce tariffs on vehicles produced in Mexico, arguing that current tariffs are higher than those on vehicles from Japan, South Korea, Germany, or Morocco. Investors will closely watch Banxico's meeting minutes and Retail Sales data next week.
The Mexican Peso's value is influenced by the performance of the Mexican economy, central bank policies, foreign investment, remittances, and geopolitical trends.
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