The Mexican Peso loses ground modestly against the US Dollar, after economic data in the United States revealed that the jobs market is solid, while inflation remains above the Federal Reserve’s 2% goal.
This suggests that higher interest rates are warranted, a tailwind for the Greenback
The USD/MXN trades near 16.97, up 0.09%. USD/MXN rises modestly as traders await Warsh’s Jackson Hole speech Price action shows that the Mexican currency has failed to gain traction over the last four trading days, perhaps awaiting Fed Chair Kevin Warsh’s speech at Jackson Hole on Friday. In the meantime, solid economic data of the United States (US) keeps the USD/MXN within familiar levels.
US data showed that jobless claims for the week ending August 22 were below estimates of 208K, coming at 203K. This reaffirms the strength of the labour market, while the US trade deficit widened, according to the US. Despite this, the US Dollar remained contained, as reflected in the US Dollar Index (DXY).