The Mexican Peso has strengthened against the US Dollar, with the market showing cautious optimism. While concerns over judicial reforms and a potential escalation of tensions with the United States remain, positive news regarding international trade and the interest rate differential between Mexico and the United States have provided support.
The US Dollar has weakened, with the DXY index falling below the 101.00 level. The market’s focus remains on the Federal Reserve’s monetary policy outlook, with expectations for interest rate cuts in September increasing.
USD/MXN Technical Outlook
The USD/MXN pair is trading within a rising channel, with a potential for further upside. A break above the 19.80 level could signal a continuation of the upward trend, with potential targets at the channel highs. However, the pair is currently consolidating near the 19.52 level, indicating a short-term pullback.