{
  "id": 10798294,
  "title": "Mexican Peso breaks 18.00 as carry trade loses its edge",
  "url": "https://urgent.news/2026/09/29/mexican-peso-breaks-18-00-as-carry-trade-loses-its-edge",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-29T22:24:57.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/mexican-peso-breaks-1800-as-carry-trade-loses-its-edge-202609292224"
  },
  "original_language": "en",
  "account": "The Mexican Peso slipped below the 18.00 mark against the US Dollar for the second consecutive day as the carry trade lost its appeal. USD/MXN surpassed the psychological 18.00 threshold for the first time since early April 2026, reaching 18.04. The decline can be attributed to narrowing interest rate differentials between Mexico and major economies, along with rising US Treasury yields surpassing 5%, prompting capital repatriation. An analyst cited by Reuters suggested the move was a \"correction and reduction in long Peso positions\" rather than a structural shift towards the emerging market currency. However, the interest rate differential between Banxico's near 6.50% and the Federal Reserve's range of 3.75%-4% has narrowed to 2.50%, the lowest since the pandemic. Fed officials, including New York Fed President John Williams, commented they are not in a hurry to tighten monetary policy, while others argue it is accommodative. The Chicago Fed President Austan Goolsbee warned that the extended inflation above the target could be \"playing with fire.\" Fed Governor Michael Barr stated that \"further policy adjustments are likely to be needed.\" US data, such as deteriorating consumer sentiment due to high oil and gas prices and a relatively solid job market, will influence the currency's trajectory. Traders are awaiting key economic releases from Mexico and the US, such as Business Confidence, S&P Global Manufacturing PMI, ADP Employment Change, US GDP, and the Nonfarm Payrolls report. The USD/MXN pair has broken above the 50-, 100-, and 200-day SMA cluster and is currently testing a medium-term resistance trend line, indicating a bullish near-term bias. Support is seen at the SMA cluster around 17.19, while the next resistance reference is the latest peak near 18.12. Geopolitical factors, oil prices, and macroeconomic data releases also significantly impact the Peso's valuation.",
  "summary": "The Mexican Peso extended its losses against the US Dollar for the second straight day, down 0.29%, as USD/MXN decisively surpassed the psychological 18.00 for the first time since the beginning of April 2026, trading at 18.04 at the time of writing.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}