Bearish
USD/MXN remains above 18.00 as carry trade appeal diminishes.
The Mexican Peso continues to weaken against the US Dollar, with USD/MXN trading above the 18.00 mark. This trend is driven by a narrowing interest rate differential between Mexico and the US, reducing the attractiveness of Peso-denominated carry trades. Additionally, the Federal Reserve's recent rate hikes have bolstered the US Dollar, further pressuring the Peso.
Key points
- USD/MXN holds above 18.00 as Mexico-US rate gap narrows.
- Peso drops 6.25% in September as carry trade unwinds.
- Soft PCE shifts October Fed odds toward hold, limiting Dollar upside.
Sources
AI-generated from public news sources. Not financial advice.
