Mexican Peso Supported by Higher Interest Rates
The Mexican Peso has shown resilience, with the USD/MXN pair trading near the 19.86 level. The market's focus remains on the Bank of Mexico's monetary policy outlook, with the central bank expected to maintain a cautious approach to interest rate cuts.
The Mexican economy has shown signs of slowing, with the recent release of economic data indicating a decline in job growth. However, the elevated inflation rate and the interest rate differential between Mexico and the United States continue to support the Mexican Peso.
USD/MXN Technical Outlook
The USD/MXN pair is trading within a rising channel, with a potential for further upside. A break above the 20.15 level could signal a continuation of the upward trend, with potential targets at the channel highs. However, the pair's recent pullback suggests a short-term consolidation.