USD/MXN dips to 17.40 as lower US tariffs on Mexican imports support the peso ahead of Fed decision.
The Mexican peso strengthened against the US dollar, with USD/MXN trading near 17.40, marking a third session of modest losses. The greenback remains firm despite softer US economic data, including a decline in the Conference Board Consumer Confidence Index to 90.8 in July and a slowdown in hiring momentum, with private employers adding just 15K jobs per week in early July.
Investors are focused on the Federal Reserve’s upcoming policy announcement, where rates are expected to remain unchanged. Attention will shift to the Fed’s guidance on inflation and employment trends. Meanwhile, Mexico’s competitive edge in the US market was preserved after Washington imposed a 10% tariff on non-USMCA Mexican imports, below the 12.5% rate for other economies.
Markets now await Mexico’s preliminary Q2 GDP data, with expectations of a 1.3% expansion.