Peso fundamental's and the lack of retail coverage, quiet mover.
The Mexican peso traded at 17 per USD in July, its strongest since November of 2015 as evidence of a resilient Mexican economy supported forecasts that the Bank of Mexico will remain hawkish for a prolonged period. Fresh PMI data showed that the country’s manufacturing sector expanded in June, the only country within the Americas that escaped from a contraction in the period. The result was the latest among a batch of strong economic releases, adding to Banxico’s recent signal that interest rates will remain at the current record high of 11.25% as long as possible to curb inflation. The figure compares to a current interest rate of 5.25% in the US. The Mexican peso has been among the world’s strongest this year, appreciating 14.4% against the dollar since the end of December 2022.
The Mexican peso traded at 17 per USD in July, its strongest since November of 2015 as evidence of a resilient Mexican economy supported forecasts that the Bank of Mexico will remain hawkish for a prolonged period. Fresh PMI data showed that the country’s manufacturing sector expanded in June, the only country within the Americas that escaped from a contraction in the period. The result was the latest among a batch of strong economic releases, adding to Banxico’s recent signal that interest rates will remain at the current record high of 11.25% as long as possible to curb inflation. The figure compares to a current interest rate of 5.25% in the US. The Mexican peso has been among the world’s strongest this year, appreciating 14.4% against the dollar since the end of December 2022.