Mxn Shows Weakness

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Mxn Shows Weakness

Mexican Peso (Mxn) Shows Weakness On Macro Data

Mexican Peso (MXN) is down against most of its counterparts in the currency market. However, this price action is driven by macro data, which boosts the other currencies.

In the USA, the release of US building permits was above forecasts and thus has forced the Mexican Peso (MXN) to give its gains. The data from the USA shows an improved outlook of the economy, which supports the US Dollar.

Mxn Under Pressure Across The Board

In the United Kingdom, the UK CPI is released which shows that inflation remains unchanged in June. The inflation in the UK was high during June, a sign that the Bank of England will have to delay the next rate cut. Once again, this worked in favor of the GBP against the MXN. So, even on that front, the trend was against the MXN.

similar story has played out in the case of EUR/MXN, which was influenced by the Eurozone inflation data. In this case, the data showed higher and sticky inflation in the EU, sending the EUR/MXN higher.

Right now, the USD/MXN exchange rate is near 17.78, while the GBP/MXN is trading at 23.17. Similarly, the trading price of EUR/MXN is around 19.46.

The overall trend in all of these MXN pairs shows a broader selling of the Mexican Peso (MXN). In other words, traders are buying other currencies against the Mexican Peso (MXN).

The weakness in the Mexican Peso (MXN) started after the speech of Kugler, a member of the Fed Board of Governors. In his speech, he tried to downplay the prospects of rate cuts, which have turned in favor of the US Dollar.

If the USA further delays the rate cuts, its implications will be widespread and could mean more upside for the USD/MXN pair.

Similarly, any progress towards the rate cut from the Federal Reserve could strength the MXN, which still offers a higher interest rate.

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