USD/MXN pair rebounds to 17.00 after dipping below the key level amid weaker US economic data.
The Mexican Peso strengthened to a 24-month high against the USD, with the USD/MXN pair briefly trading below 17.00. The move followed softer US consumer sentiment and retail sales data, which weighed on the Greenback.
Earlier, the pair tested multi-month lows but recovered as buyers re-entered the market, pushing it back above 17.00. Traders are now awaiting the release of Banxico’s minutes for further policy clues.
The Peso’s rally reflects broader USD weakness and expectations of sustained monetary policy divergence between Mexico and the US.