USDMXN Analysis – February-6-2024

The Mexican peso fell beyond 17.1 against the US dollar (USDMXN), pulling back from a two-week peak of 17.07 USD on February 1st due to a strengthening US dollar bolstered by a robust job market. The US dollar gained as expectations for early Federal Reserve interest rate cuts diminished, following a report that the US added nearly twice as many jobs as expected, with a total of 353,000.

However, the peso’s drop was somewhat checked by strong business confidence, which stayed at an 11-year high of 54.5 in January, and the Purchasing Managers’ Index (PMI) indicating growth. Additionally, while Mexico’s GDP growth in the fourth quarter didn’t meet forecasts, it showed the economy’s toughness. With inflation continuously over the target set by Mexico’s central bank, Banxico, any rate cut could be postponed despite some officials hinting at potential rate cuts in early 2024.

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Ethan O. Miller

Ethan O. Miller is a seasoned Forex analyst. His insightful articles offer a unique perspective on currency trends, aiding both novice and experienced traders in navigating the Forex market.

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