The Mexican Peso depreciated against the US Dollar amid ongoing market apprehension regarding US-China trade relations, despite optimistic commentary from US Treasury Secretary Steven Mnuchin regarding potential trade agreements. The USD/MXN exchange rate currently stands at 20.72, reflecting a 0.25% increase. While the global equity sell-off has temporarily abated, market uncertainty persists following the implementation of increased US tariffs on Chinese goods. A recent Citi survey indicates expectations for a 50 basis point rate reduction by Banco de México in May, coupled with downward revisions to economic growth forecasts. Market participants are awaiting the release of Mexican CPI data and US inflation figures, with the forthcoming Federal Reserve minutes anticipated to influence future rate expectations.
