Mexican Peso holds ground as growing concerns over US fiscal health hurt US Dollar
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The Mexican Peso remains firm, buoyed by a weaker Greenback after Trump’s tax and spending bill was approved by the US House of Representatives. Mexican Trade data and Fed speakers ahead of US Housing data remain key for the USD/MXN in the near term. USD/MXN bears remain in control, with the May low proving the next technical hurdle. The Mexican Peso (MXN) is benefiting from the renewed US Dollar (USD) weakness on Friday, which is driven by concerns over the health of the United States (US) deficit after the US House of Representatives voted in favour of Trump’s administration tax and spending bill. As investors assess the impact of the bill on the US debt burden, the future growth prospects, and interest-rate expectations, USD/MXN remains below prior psychological support at 19.30, which is providing immediate resistance at the time of writing. Fed speakers and Mexican Trade data to drive volatility Mexico’s Trade Balance data released on Friday showed a deficit of $0.088 billion, less than the $0.16 billion forecast by analysts. The report, published by the National Institute of Statistics and Geography of Mexico (INEGI) on a monthly basis, reflects the difference between a country’s exports and its imports. Despite posting a narrower-than-expected trade deficit, it still represents a swing from the $3.442 billion surplus reported in March. For the United States (US), speakers of the Federal Reserve (Fed) will continue to provide comments about interest rate expectations. Investors will be monitoring the comments closely for signs of any changes in when the Fed may cut interest rates. At 14:00 GMT, Housing data will be released, reflecting the demand for housing in April, perceived as a leading indicator of spending and demand for credit. Mexican Peso daily digest: US fiscal concerns linger. Fiscal concerns surrounding the passing of Trump’s proposed…
Filed under: News - @ May 23, 2025 2:29 pm