{
  "id": 703781,
  "title": "Mexican Peso rallies to two-year high as soft CPI hits Fed bets",
  "url": "https://urgent.news/2026/08/12/mexican-peso-rallies-to-two-year-high-as-soft-cpi-hits-fed-bets",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-12T21:34:32.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/mexican-peso-rallies-to-two-year-high-as-soft-cpi-hits-fed-bets-202608122134"
  },
  "original_language": "en",
  "account": "On Wednesday, the Mexican Peso (MXN) strengthened against the US Dollar (USD), reaching a two-year high as reported U.S. inflation data came in softer than expected. The USD/MXN exchange rate hit 17.05, up from early lows of 17.01. The U.S. Consumer Price Index (CPI) for July matched market expectations, showing a year-over-year decline from 3.5% to 3.4% and a core CPI decrease from 2.6% to 2.5%. Despite a 23% jump in oil prices, WTI remains 9% lower than its June level. While Fed dovish members are not out of danger, Iran's rejection of extending a ceasefire with the U.S. adds to uncertainty. Meanwhile, Fed member Susan Collins stated she would vote to raise rates if inflation persists, as per the Financial Times. Analysts anticipate Banxico to keep its key policy rate at 6.50% through the end of the year, with the USD/MXN pair expected to close at 17.90. The bearish near-term bias is evident as the USD/MXN pair trades below the 50/100/200-day Simple Moving Averages (SMA) cluster at 17.3918. The Relative Strength Index (RSI) at 28.78 suggests oversold conditions, hinting at stretched downside momentum. Technical analysis indicates that any upside movement may face resistance at the triple SMA cluster around 17.39, while traders should monitor price action and the oversold RSI reading for potential short-term consolidation or rebounds.",
  "summary": "The Mexican Peso (MXN) appreciates on Wednesday against the US Dollar (USD) to levels last seen in May 2024 following a decline in US inflation, as markets expected, softer-than-expected, which trims bets of a rate hike by the Federal Reserve (Fed) in its next meeting.",
  "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."
}