USD/MXN falls to 17.32 as Mexico’s Q2 GDP growth beats expectations, boosting carry-trade demand before Banxico’s meeting.
The Mexican Peso strengthened against the US Dollar on Monday, with USD/MXN dropping 0.14% to 17.32. The move reflects increased risk appetite and carry-trade demand for the emerging-market currency ahead of the Bank of Mexico’s monetary policy decision this week.
Mexico’s economy expanded 1.5% quarter-over-quarter in Q2 2026, rebounding from a 0.6% contraction in Q1. The recovery was driven by household consumption and social welfare programs, according to analysts. Private economists have also raised GDP growth forecasts for the year to 1.20% from 1.10%.
Traders expect Banxico to hold rates at 6.50% on August 6, with an 88% probability, while inflation forecasts for 2026 have been revised downward to 4%. Consumer confidence data is due August 4, adding to the week’s moderate economic calendar.