The Mexican peso weakens as the central bank pauses rate cuts, pushing USD/MXN toward its 200-day moving average.
The Mexican peso came under pressure after Banxico held interest rates steady, with USD/MXN testing resistance at its 200-day moving average near 17.80. The pair has held support around 17.10 but is now attempting a breakout from a consolidation pattern.
Recent trading saw a low of 17.30 before the move higher. Analysts note the pause in Banxico’s easing cycle contrasts with expectations, adding upward momentum to the currency pair.
Market focus remains on whether USD/MXN can sustain a break above 17.80, which could signal further upside.