USD/MXN Rises Amidst Business Confidence and Manufacturing Sector Growth

During the European trading hours on Wednesday, the USD/MXN pair surged to nearly 16.60. The National Statistics Agency (INEGI) reported that Business Confidence in Mexico remained unchanged at 54.3 in February, maintaining levels not seen in nearly eleven years. However, investment prospects improved to 48.5 from 47.2, albeit remaining pessimistic.

The Mexican Peso (MXN) strengthened as growth in Mexico’s manufacturing sector held steady in March, contributing to the weakening of the USD/MXN pair. Traders are closely monitoring the release of Gross Fixed Investment figures on Wednesday, along with the upcoming publication of the latest meeting minutes for the Bank of Mexico (Banxico).

The USD’s stable performance is bolstering the hawkish price action of the USD/MXN pair. Market sentiment is shifting, with diminished expectations for a Federal Reserve (Fed) interest rate cut in June, leading to heightened US Treasury bond yields and favoring USD bulls.

On Tuesday, US February JOLTS Job Openings exceeded market expectations, rising to 8.756 million from the previous figure of 8.748 million. Additionally, Factory Orders rebounded with a 1.4% month-on-month increase in February, following a 3.8% decline in the prior reading.

In the United States (US), investors are eagerly awaiting the release of the ADP Employment Change and ISM Services PMI data scheduled for Wednesday. Furthermore, Federal Reserve Chairman Jerome Powell is set to deliver a speech on the US economic outlook at the Stanford Business, Government, and Society Forum in Stanford, drawing further attention from market participants.

MXN latest articles

Popular exchange rates

foreign exchange

fxcurrencyconverter is a forex portal. The main columns are exchange rate, knowledge, news, currency and so on.

© 2023 Copyright