Traders take profits on the Mexican Peso as markets await Wednesday’s US inflation report and assess Fed policy outlook.
The Mexican Peso weakens modestly against the US Dollar, with USD/MXN rising 0.05% to 17.14. Profit-taking follows last week’s softer-than-expected US jobs data and ahead of critical inflation figures due Wednesday.
The US Dollar Index (DXY) recovers to 99.80 after hitting two-month lows near 99.40. Last week’s Nonfarm Payrolls missed estimates, though the Unemployment Rate dipped to 4.1%. Traders now focus on US inflation data, which could signal a return to disinflation and influence Fed rate decisions.
Mexico’s inflation nears Banxico’s 3% target, easing pressure on the central bank. Markets await US CPI and PPI reports for further direction on monetary policy.