Mexican Peso Slips Slightly at the Start of a Data-Heavy Week
Earlier in the day, it was reported that Mexico’s seasonally adjusted unemployment rate fell to 2.6% last month.
Quick overview
- The Mexican peso weakened slightly against the dollar, closing at 19.5784 pesos per dollar.
- Investors are awaiting key economic data releases this week, including Mexico's GDP figures.
- Market participants are concerned about potential recession signals in Mexico, despite positive local data such as a drop in unemployment.
- The U.S. Dollar Index fell 0.53%, reflecting broader market dynamics amid ongoing U.S.-China trade tensions.
Live USD/MXN Chart
The Mexican peso weakened slightly against the dollar on Monday, as investors awaited further developments in the U.S.-China trade conflict and prepared for a wave of key economic data releases throughout the week.
The exchange rate closed the session at 19.5784 pesos per dollar. Compared to Friday’s official close of 19.5223 pesos, according to data from the Bank of Mexico (Banxico), this represented a loss of 5.61 centavos, or 0.29%.
During the session, the dollar traded between a high of 19.6088 pesos and a low of 19.4829 pesos. Meanwhile, the U.S. Dollar Index (DXY) from the Intercontinental Exchange — which measures the dollar against a basket of six major currencies — fell 0.53% to 98.94 points by the end of the day.
This week is packed with significant economic releases, notably Mexico’s Gross Domestic Product (GDP) figures, amid speculation that the country may have entered a recession in the first quarter. The United States is also set to report its own GDP data.
Without new developments in the U.S.-China trade tensions, investors are focused on assessing the impact of President Donald Trump’s tariffs, which threaten to slow down the world’s largest economy and fuel inflation.
Mexican Peso Outlook
Locally, market participants are seeking greater clarity after several firms suggested that the Mexican economy may have slipped into recession during the first quarter—a claim that President Claudia Sheinbaum publicly rejected at a recent press conference.
The peso started the week trading cautiously around the 19.50 support level, with low trading volume preventing any strong continuation of its recent appreciation. A breakout with higher volume could push the peso toward the 19.20 level, according to some analysts.
Others noted that the peso found some support from positive local data. Earlier in the day, it was reported that Mexico’s seasonally adjusted unemployment rate fell to 2.6% last month, while the country posted a trade surplus of $1.035 billion.
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