- The Mexican Peso declined by 0.48%, even with positive surprises in Mexican employment figures and trade statistics.
- Persistent trade friction between the US and China is dampening overall market optimism, thereby capping the Peso’s potential gains.
- Market participants will be closely watching Mexico’s first-quarter GDP, Business Confidence surveys, and Manufacturing PMI figures this week.
The Mexican Peso depreciated by 0.48% relative to the US Dollar on Monday, in spite of advances on Wall Street and a 0.64% decrease in the US Dollar Index (DXY). Currently, the USD/MXN exchange rate is 19.58, having recovered from a daily low of 19.47.
Investors are still concerned regarding US trade strategies. Previously, US Treasury Secretary Scott Bessent indicated progress on certain trade initiatives, but noted that discussions with China have not commenced. CNBC reported that China maintains that no tariff discussions are in progress with Trump and Xi or their representatives, contradicting US assertions.
Meanwhile, recent economic data releases from Mexico showed continued job creation despite a broader economic slowdown. Furthermore, data from the Instituto Nacional de Estadistica y Geografia (INEGI) indicated that Mexico’s Trade Balance recorded a surplus in March, as export activity exceeded import activity.
