USD/MXN drops to 17.08, its lowest since June 2024, as Mexican industrial output beats expectations and Fed pause bets rise.
The Mexican Peso strengthened 0.32% against the US Dollar to 17.08, marking its lowest level in 25 months. The move follows stronger-than-expected Mexican industrial output data for June, which rose 0.2% month-over-month, recovering from a -0.8% contraction in May.
Annual industrial output surged 1.7%, exceeding forecasts of 1.1% and reversing May’s -0.7% decline. Despite the gains, traders held back from pushing USD/MXN below 17.00 ahead of Wednesday’s US inflation report, which could influence Federal Reserve policy decisions.
US headline CPI is expected to ease to 3.4% year-over-year in July from 3.5%, while core inflation may dip to 2.5% from 2.6%. Softer data could reinforce expectations of a Fed pause, further supporting the Peso.