The Mexican Peso rallies to a two-year high of 16.94 as the US Dollar weakens amid falling US yields, which retreated after the US Treasury doubled the size of its long-duration bond buyback.
The USD/MXN trades at 16.95, down 0.27%
USD/MXN slides as lower US yields offset Iran uncertainty Market mood has improved even though the odds for a quick resolution of the US-Iran conflict seem far from materializing in the short term. Headlines in the Middle East show mixed stances of Tehran and Washington. For example, the Iranian Deputy Parliament Speaker said that “We consider the Strait of Hormuz part of Iran and the Islamic Republic will continue to administer it.” At the same time, an Iranian official said that US President Trump’s threats to bomb Iran are illogical and have no effect, referring to his statements as absurd, reported Al Mayadeen.
At around 18:00 GMT, the Federal Reserve is likely to release its final meeting minutes. The US economic docket for the remainder of the week includes Initial Jobless Claims, a speech by St. Louis Fed President Alberto Musalem, and the release of S&P Global Flash PMIs.