{
  "id": 16795197,
  "title": "Mexican Peso hit by carry trade unwind as USD/MXN reclaims 18.60",
  "url": "https://urgent.news/2026/10/27/mexican-peso-hit-by-carry-trade-unwind-as-usd-mxn-reclaims-18-60",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-27T20:06:14.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/mexican-peso-hit-by-carry-trade-unwind-as-usd-mxn-reclaims-1860-202610272006"
  },
  "original_language": "en",
  "account": "The Mexican Peso (MXN) experienced a depreciation of 0.60% against the US Dollar (USD) on Tuesday, after the USD strengthened against a basket of six currencies, the US Dollar Index (DXY). This occurred as a result of the carry trade unwind, with most major central banks poised to raise rates amid high inflation. The USD/MXN pair is currently trading at 18.68, after bouncing off daily lows of 18.54. The interest rate differential between the US and Mexico is expected to narrow further, with Banxico not expected to adjust rates for the remainder of the year or for 2027. In contrast, the Fed is expected to raise rates at least once more this year and by 43 basis points next year. Political turmoil in Mexico surrounds the National Electoral Institute, while the US economic docket includes an improved Conference Board (CB) Consumer Confidence and expanding Durable Goods Orders. The focus now shifts to the Fed's policy decision on Wednesday, with markets pricing in an 82% chance of a rate hike by December. Technical analysis shows USD/MXN trading above clustered 50/100/200-day simple moving averages, indicating a bullish bias. Support is expected at the multi-period SMA cluster around 17.64, with a more distant horizontal floor at 16.89.",
  "summary": "The Mexican Peso (MXN) makes a U-turn and depreciates 0.60% against the US Dollar (USD) on Tuesday, as the latter strengthens against a basket of six currencies, the US Dollar Index (DXY).",
  "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."
}