The Mexican Peso (MXN) appreciated on Wednesday, closing with a 0.86% gain, following the exemption of Mexico and Canada from newly imposed US tariffs. As the Asian session commences on Thursday, the USD/MXN exchange rate is observed at 20.24, reflecting a 0.33% increase. Recent US tariff announcements included a 10% levy on all imports and a 25% duty on automobiles, effective April 3rd, impacting nations such as China (34%), the European Union (20%), Vietnam (46%), Japan (24%), and the United Kingdom (10%). President Claudia Sheinbaum’s decision to forgo retaliatory tariffs initially weakened the USD/MXN, prompting buyer activity and maintaining the pair within established trading ranges. Mexico’s fiscal strategy aims for a reduced deficit and projects optimistic growth figures. While robust US labor market data supports the USD, market attention is now directed towards the upcoming ISM Services PMI, Non-Farm Payroll (NFP) data, and subsequent remarks from Federal Reserve Chairman Jerome Powell later in the week.
